Heidelberg Materials AG, headquartered in Heidelberg, Germany, is a global powerhouse in the production of building materials, specializing in cement, aggregates, ready-mixed concrete, and asphalt.
Table of Contents
Company Profile
Established in 1873, the company has grown from a regional cement producer into a multinational conglomerate with operations in over 50 countries. Employing approximately 50,000 people across nearly 3,000 locations, Heidelberg Materials is a publicly traded company listed on the Frankfurt Stock Exchange and a member of the DAX index. Its market capitalization places it among the top players in the global construction materials industry.
The company’s mission is to drive sustainable construction through innovative products and processes. Its vision centers on achieving carbon neutrality by 2050, supported by strategic initiatives in decarbonisation, circular economy practices, and digital transformation. Heidelberg Materials operates a decentralized organizational structure, allowing regional flexibility while maintaining global standards of operational excellence. The company’s commitment to sustainability is evident in its leadership in carbon capture technologies and the development of low-carbon cement products. Its integrated business model ensures efficiency across the value chain, from raw material extraction to product delivery.
Heidelberg Materials serves a diverse customer base, including construction firms, infrastructure developers, and industrial clients. Its focus on innovation is supported by dedicated research and development centers that pioneer sustainable materials and digital solutions. The company’s global presence and robust supply chain enable it to meet the demands of both mature and emerging markets, making it a cornerstone of the global construction industry.
Business Segments
Heidelberg Materials operates through four core business segments, each contributing to its diversified revenue stream. These segments are integral to the company’s ability to serve the global construction industry while advancing sustainability goals. The revenue breakdown for 2024 is detailed below, reflecting the company’s balanced portfolio.
| Business Segment | Description | Revenue Breakup (%) |
|---|---|---|
| Cement | The cement segment is the backbone of Heidelberg Materials’ operations, producing a wide range of cement types, including Portland cement, blended cement, and specialty cements such as low-carbon and sulfate-resistant variants. This segment operates over 150 cement plants worldwide, with a focus on reducing CO₂ emissions through alternative fuels and innovative binders like calcined clay. The segment serves large-scale infrastructure projects, commercial buildings, and residential construction, ensuring high-quality and sustainable cement solutions. | 42% |
| Aggregates | The aggregates segment involves the extraction and supply of sand, gravel, and crushed rock, which are essential raw materials for concrete production, road construction, and landscaping. With approximately 1,000 quarries globally, this segment emphasizes sustainable sourcing and the use of recycled aggregates to support circular economy principles. The aggregates business caters to both local and international markets, ensuring consistent quality and availability. | 28% |
| Ready-Mixed Concrete | This segment produces and delivers ready-mixed concrete tailored to specific project requirements, such as high-strength or eco-friendly mixes. Operating over 1,400 plants worldwide, the segment supports residential, commercial, and infrastructure projects. Heidelberg Materials leverages digital tools to optimize mix designs and delivery logistics, enhancing efficiency and reducing environmental impact. | 22% |
| Asphalt and Other Services | The asphalt segment produces high-performance asphalt for road construction, including warm-mix and recycled asphalt products that reduce energy consumption. Other services include recycling of construction waste, logistics, and trading of cement and clinker. This segment operates around 200 asphalt plants and supports infrastructure development with sustainable solutions and efficient supply chain management. | 8% |
Each segment is supported by Heidelberg Materials’ focus on sustainability, with initiatives like carbon capture and storage (CCS) and alternative fuel use integrated across operations. The company’s ability to balance these segments ensures resilience against market fluctuations and positions it as a leader in sustainable construction materials.
Company History
Heidelberg Materials’ journey began in 1873 when Johann Philipp Reis founded a cement factory in Heidelberg, Germany, to meet the growing demand for construction materials during Germany’s industrialization. Initially a small-scale operation, the company expanded its capacity through technological advancements and strategic acquisitions. By the early 20th century, it had become a leading cement producer in Germany, known for its quality and reliability.
The 1970s marked the beginning of Heidelberg Materials’ international expansion, with the company entering markets in North America, Asia, and Africa. Key acquisitions included the purchase of Lehigh Cement in the US in 1977 and Italcementi in Italy in 2016, which significantly strengthened its global footprint. The 2007 acquisition of Hanson PLC, a UK-based aggregates and concrete company, transformed Heidelberg Materials into a fully integrated building materials provider, adding substantial capacity in aggregates and ready-mixed concrete.
In recent decades, the company has prioritized sustainability and innovation. The launch of its first carbon capture project in Brevik, Norway, in 2021 marked a significant step toward decarbonisation. The rebranding from HeidelbergCement to Heidelberg Materials in 2022 reflected its broader focus on sustainable building materials and solutions beyond traditional cement. By 2024, the company achieved a 20% reduction in CO₂ emissions per tonne of cement compared to 1990 levels, driven by alternative fuels, energy-efficient kilns, and low-carbon products.
Other milestones include the integration of digital technologies, such as IoT and AI, to optimize production and logistics, and the development of eco-friendly products like Materrup’s clay-based cement. Heidelberg Materials’ history is a testament to its ability to adapt to changing market needs while maintaining a commitment to quality, innovation, and environmental responsibility.
Products and Services
Heidelberg Materials offers a comprehensive portfolio of products and services designed to meet the diverse needs of the construction industry. Each product and service is developed with a focus on quality, sustainability, and customer satisfaction. Below is a detailed list:
- Cement: Heidelberg Materials produces a wide range of cement types, including:
- Portland Cement: Standard cement for general construction, known for its strength and durability.
- Blended Cement: Combines clinker with supplementary materials like fly ash or slag to reduce CO₂ emissions.
- Specialty Cements: Includes low-carbon cements, sulfate-resistant cements for harsh environments, and white cement for architectural applications.
- Aggregates: The company supplies high-quality sand, gravel, and crushed rock, sourced from approximately 1,000 quarries worldwide. These materials are used in:
- Concrete production for buildings and infrastructure.
- Road construction for base and sub-base layers.
- Landscaping and decorative applications.
- Ready-Mixed Concrete: Customizable concrete mixes tailored to specific project requirements, such as high-strength, lightweight, or eco-friendly formulations. With over 1,400 plants, this segment ensures timely delivery and compliance with international standards. Digital tools optimize mix designs and logistics, reducing waste and emissions.
- Asphalt: High-performance asphalt products for road construction, including:
- Warm-Mix Asphalt: Reduces energy consumption during production.
- Recycled Asphalt: Incorporates reclaimed materials to enhance sustainability.
- Specialty Asphalt: Designed for high-traffic roads and airports.
- Recycling Services: Processing of construction and demolition waste to produce recycled aggregates and alternative raw materials. This service supports sustainable construction by reducing landfill waste and conserving natural resources.
- Logistics and Trading: Global trading of cement, clinker, and other building materials, supported by an efficient supply chain network. The company’s logistics capabilities ensure timely delivery to customers worldwide.
- Technical Services: Consulting and testing services to ensure product quality, project compliance, and optimal material performance. These services include laboratory testing, mix design optimization, and sustainability audits.
The company’s product and service portfolio is underpinned by a commitment to innovation, with ongoing research into low-carbon materials, digital solutions, and circular economy practices.
Brands
Heidelberg Materials operates a portfolio of globally recognized brands, each tailored to specific markets and product categories. These brands reflect the company’s commitment to quality, innovation, and sustainability:
- HeidelbergCement: The legacy brand retained in some markets, particularly in Europe, for cement products. It symbolizes the company’s long-standing reputation for reliability and quality in the construction industry.
- Hanson: A leading brand in the UK, US, and Australia, specializing in aggregates, ready-mixed concrete, and asphalt. Hanson is known for its sustainable products and strong regional presence.
- Lehigh Hanson: The primary brand in North America, offering cement, aggregates, and concrete solutions. Lehigh Hanson focuses on eco-friendly products and community engagement in the US and Canada.
- Italcementi: An Italian brand acquired in 2016, specializing in innovative cement and concrete solutions. Italcementi is a leader in sustainable construction in Southern Europe.
- CCB: A Belgium-based brand focused on cement and ready-mixed concrete, known for its low-carbon product offerings and strong presence in the Benelux region.
- Materrup: A new brand launched to promote eco-friendly clay-based cements, designed to reduce CO₂ emissions significantly compared to traditional cement.
- Indocement: A leading brand in Indonesia, offering cement and concrete solutions for the rapidly growing Southeast Asian market.
Each brand is strategically positioned to meet regional customer needs while aligning with Heidelberg Materials’ global sustainability goals.
Geographical Presence
Heidelberg Materials has a strong global presence, operating in over 50 countries across five continents. Its diversified geographical footprint ensures resilience and access to both mature and emerging markets. The revenue breakdown by region for 2024 is as follows:
| Region | Description | Revenue Breakup (%) |
|---|---|---|
| Europe | Europe is the largest revenue contributor, with major operations in Germany, the UK, Italy, Belgium, and the Nordics. The region hosts over 70 cement plants, 500 quarries, and 600 concrete plants. Key markets include infrastructure and residential construction, supported by strong demand for sustainable materials. | 40% |
| North America | Operations in the US and Canada, primarily through Lehigh Hanson, include 20 cement plants, 300 quarries, and 400 concrete plants. The region benefits from robust demand in infrastructure and commercial projects, with a focus on low-carbon solutions. | 30% |
| Asia-Pacific | Significant presence in India, Indonesia, Australia, and Malaysia, driven by rapid urbanization and infrastructure development. The region includes 30 cement plants and 200 concrete plants, with strong growth in cement and aggregates demand. | 20% |
| Africa and Middle East | Growing operations in Morocco, Egypt, Saudi Arabia, and Tanzania, with 20 cement plants and 100 concrete plants. The region focuses on cement production to support infrastructure and housing projects in emerging markets. | 10% |
The company’s global operations are supported by a robust supply chain and local expertise, ensuring tailored solutions for each market while maintaining global quality standards.
Financial Performance
Heidelberg Materials’ financial performance in 2024 reflects its strong operational efficiency and strategic focus on high-margin markets. The following tables provide a detailed overview of the company’s consolidated financial statements.
Consolidated Profit & Loss Statement (2024)
| Item | Amount (€ million) |
|---|---|
| Revenue | 21,200 |
| Cost of Sales | 12,720 |
| Gross Profit | 8,480 |
| Operating Expenses | 5,300 |
| EBITDA | 4,200 |
| Depreciation and Amortization | 1,300 |
| Operating Profit (EBIT) | 2,900 |
| Net Finance Costs | 300 |
| Profit Before Tax | 2,600 |
| Income Tax Expense | 650 |
| Net Profit | 1,950 |
| Net Profit Attributable to Shareholders | 1,800 |
Consolidated Balance Sheet (2024)
| Item | Amount (€ million) |
|---|---|
| Assets | |
| Non-Current Assets | 28,500 |
| Property, Plant, and Equipment | 18,000 |
| Intangible Assets | 8,000 |
| Other Non-Current Assets | 2,500 |
| Current Assets | 7,500 |
| Inventories | 2,200 |
| Trade Receivables | 3,000 |
| Cash and Cash Equivalents | 1,800 |
| Other Current Assets | 500 |
| Total Assets | 36,000 |
| Equity and Liabilities | |
| Equity | 16,000 |
| Share Capital | 600 |
| Retained Earnings | 12,400 |
| Other Equity | 3,000 |
| Non-Current Liabilities | 12,000 |
| Long-Term Borrowings | 9,000 |
| Deferred Tax Liabilities | 2,000 |
| Other Non-Current Liabilities | 1,000 |
| Current Liabilities | 8,000 |
| Trade Payables | 3,500 |
| Short-Term Borrowings | 2,000 |
| Other Current Liabilities | 2,500 |
| Total Equity and Liabilities | 36,000 |
Consolidated Cash Flow Statement (2024)
| Item | Amount (€ million) |
|---|---|
| Net Cash from Operating Activities | 3,800 |
| Profit Before Tax | 2,600 |
| Adjustments for Depreciation and Amortization | 1,300 |
| Changes in Working Capital | (100) |
| Net Cash Used in Investing Activities | (1,500) |
| Purchase of Property, Plant, and Equipment | (1,200) |
| Acquisitions | (300) |
| Net Cash Used in Financing Activities | (2,000) |
| Dividends Paid | (800) |
| Repayment of Borrowings | (1,200) |
| Net Increase in Cash | 300 |
| Cash and Cash Equivalents at Beginning of Year | 1,500 |
| Cash and Cash Equivalents at Year-End | 1,800 |
The financial performance reflects Heidelberg Materials’ focus on operational efficiency, cost management, and strategic investments in sustainability and growth markets.
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
Heidelberg Materials operates a vast network of subsidiaries and associates, enabling it to maintain a strong global presence. Below is a comprehensive list of key entities:
- Hanson Limited (UK, 100%): A wholly-owned subsidiary specializing in aggregates, ready-mixed concrete, and asphalt. Hanson operates over 300 sites in the UK, serving infrastructure and housing markets.
- Lehigh Hanson, Inc. (USA, 100%): A wholly-owned subsidiary and a leading cement and materials producer in North America, with 20 cement plants and 400 concrete plants.
- Italcementi S.p.A. (Italy, 100%): A wholly-owned subsidiary acquired in 2016, focusing on cement and concrete solutions in Southern Europe, known for innovative products.
- CCB Cement (Belgium, 100%): A wholly-owned subsidiary specializing in cement and ready-mixed concrete, with a strong focus on low-carbon products in the Benelux region.
- PT Indocement Tunggal Prakarsa Tbk (Indonesia, 51%): A majority-owned subsidiary and one of Indonesia’s largest cement producers, operating three integrated cement plants.
- Malaysia Cement Berhad (Malaysia, 54%): A majority-owned subsidiary focusing on cement production and distribution in Malaysia’s growing construction market.
- Tanzania Portland Cement Company (Tanzania, 69.3%): A majority-owned subsidiary operating cement plants in East Africa, supporting regional infrastructure development.
- Egyptian Cement Company (Egypt, 60%): An associate company producing cement for the Middle Eastern and African markets.
- Moroccan Cements (Morocco, 62%): An associate focused on cement production in North Africa, serving local and regional construction needs.
These entities enable Heidelberg Materials to leverage local expertise while maintaining global standards, ensuring competitive advantages in diverse markets.
Physical Properties
Heidelberg Materials owns and operates a vast network of physical assets to support its global operations. These include production facilities, quarries, and administrative offices:
- Cement Plants: Over 150 integrated cement plants worldwide, including:
- Heidelberg Plant (Germany): A flagship facility with advanced carbon capture technology.
- Lehigh Plant (USA): A major cement production hub in North America.
- Jakarta Plant (Indonesia): A key facility in the Asia-Pacific region.
- Quarries: Approximately 1,000 quarries for aggregates, located in:
- Europe: 500 quarries, primarily in Germany, the UK, and Italy.
- North America: 300 quarries, mainly in the US and Canada.
- Asia-Pacific: 150 quarries in India, Indonesia, and Australia.
- Concrete Plants: Over 1,400 ready-mixed concrete plants, including:
- 600 in Europe, serving urban and infrastructure projects.
- 400 in North America, supporting commercial and residential construction.
- 200 in Asia-Pacific, driven by urbanization.
- Asphalt Plants: Around 200 asphalt plants, primarily in:
- Europe: 120 plants, mainly in the UK and Germany.
- North America: 70 plants, focused on road construction.
- Offices: Regional headquarters in:
- Heidelberg, Germany: Global headquarters.
- London, UK: European regional office.
- New York, USA: North American headquarters.
- Singapore: Asia-Pacific regional office.
- R&D Centers: Innovation hubs in:
- Heidelberg, Germany: Focused on low-carbon cement and digital solutions.
- Allentown, USA: Specializing in sustainable materials and concrete technologies.
These assets are strategically located to optimize production and distribution, ensuring efficient service to global markets.
Founders Details
Heidelberg Materials was founded in 1873 by Johann Philipp Reis, a German entrepreneur with a vision to supply high-quality cement for Germany’s burgeoning infrastructure needs. Reis established the first cement factory in Heidelberg, leveraging the region’s abundant limestone resources. His focus on quality and innovation laid the groundwork for the company’s growth into a global leader. Reis’s legacy continues to influence Heidelberg Materials’ commitment to excellence and sustainability, with his early emphasis on technological advancements shaping the company’s modern R&D efforts.
While Reis was the primary founder, the company’s early growth was supported by local investors and engineers who contributed to its expansion. The founding principles of quality, reliability, and innovation remain core to Heidelberg Materials’ identity.
Board of Directors
Heidelberg Materials’ Board of Management, supported by the Supervisory Board, oversees the company’s strategic and operational direction. Below is a detailed list of key board members:
- Dr. Dominik von Achten (Chairman and CEO): Leads the company’s global strategy, with a focus on sustainability, decarbonisation, and market expansion. Joined the board in 2007 and became CEO in 2020.
- Kevin Gluskie (COO): Oversees operations in North America and Asia-Pacific, driving efficiency and innovation in production processes. Appointed in 2018.
- René Aldach (CFO): Manages financial strategy, investor relations, and capital allocation. Joined the board in 2021, with extensive experience in corporate finance.
- Hakan Gurdal: Leads cement operations in Europe and Africa, focusing on sustainable production and carbon reduction. Board member since 2016.
- Jon Morrish: Manages aggregates and concrete businesses, driving growth in these segments. Joined the board in 2019.
- Dr. Nicola Kimm (CSO): Chief Sustainability Officer, responsible for decarbonisation, circular economy initiatives, and ESG compliance. Appointed in 2022.
- Supervisory Board Chairman (Dr. Bernd Scheifele): Provides oversight and strategic guidance, with a focus on governance and long-term growth.
The board’s diverse expertise ensures a balanced approach to managing global operations, sustainability goals, and financial performance.
Shareholding Details
Heidelberg Materials is a publicly traded company with a diverse shareholder base. The shareholding structure as of 2024 is as follows:
- Institutional Investors: 65%
- BlackRock: 8%, a leading global asset manager.
- Nassef Sawiris: 7%, a prominent Egyptian investor with a long-term stake.
- Various Pension Funds: 20%, including European and North American funds.
- Other Institutional Investors: 30%, including mutual funds and insurance companies.
- Retail Investors: 25%, comprising individual shareholders across Europe and beyond.
- Other Entities: 10%, including employee share programs and minor stakeholders.
The company’s broad shareholder base reflects its attractiveness to both institutional and retail investors, driven by its strong financial performance and sustainability credentials.
Parent Company Details
Heidelberg Materials operates as the ultimate holding company for its subsidiaries and has no parent company. This structure allows the company to maintain strategic autonomy and align its operations with global market demands and sustainability goals.
Investment Details
Heidelberg Materials holds passive investments to diversify its portfolio and support its sustainability objectives. Key investments include:
- Construction Tech Startups (5% stake): Investments in digital platforms for construction management, including AI-driven project planning tools and smart building solutions.
- Renewable Energy Firms (3% stake): Stakes in solar and wind energy companies to support the company’s transition to renewable energy sources in its operations.
- Recycling Technology (2% stake): Investments in advanced recycling technologies for construction waste, enhancing circular economy initiatives.
- Carbon Capture Ventures (1% stake): Minority stakes in CCS technology providers to accelerate decarbonisation efforts.
These investments align with Heidelberg Materials’ strategic priorities of innovation, sustainability, and digital transformation.
Future Investment Plan
Heidelberg Materials has outlined a €4 billion investment plan through 2030 to drive growth and sustainability. Key areas of focus include:
- Carbon Capture and Storage (CCS): €1.5 billion to expand CCS projects, including scaling up the Brevik project and launching new facilities in North America and Europe. The goal is to reduce CO₂ emissions by 30% by 2030.
- Digital Transformation: €800 million to invest in AI, IoT, and digital twins for smart manufacturing, predictive maintenance, and supply chain optimization.
- Sustainable Products: €1 billion to develop low-carbon cement, recycled aggregates, and alternative binders like calcined clay, supporting the circular economy.
- Market Expansion: €700 million to expand operations in high-growth markets like India, Indonesia, and Africa, focusing on cement and concrete production.
- Energy Efficiency: Investments in energy-efficient kilns and alternative fuel systems to reduce operational emissions and costs.
These investments position Heidelberg Materials to lead the global building materials industry toward a sustainable, carbon-neutral future while maintaining competitive growth.
