Heidelberg Materials Balances French Cuts With Peruvian Growth as Shares Hover Near Yearly Low
Published on 09/21/2026 at 03:50 | Editorial boerse-global.de
Heidelberg Materials is trimming its industrial footprint in Western Europe while simultaneously deepening its reach in emerging markets — a two-track strategy that has so far failed to lift a share price still languishing close to its 52-week floor.
The DAX-listed building materials group confirmed that its French subsidiary, Heidelberg Materials France, intends to shut down its cement plant in Ranville, Normandy. The decision puts 87 jobs at the site on the line and stems from a marked decline in construction demand across the French home market. By idling Ranville, management aims to bring European production capacity in line with today's softer order intake, redistributing output across the remaining network to avoid excess capacity. For the affected workers, the company says it is currently exploring internal transfers, with the goal of offering continued employment at other French locations.
A Peruvian Bet and a Swedish Green Light
While capacity is being scaled back in mature European markets, Heidelberg Materials is moving in the opposite direction elsewhere. On September 8, the group signed a binding agreement to acquire a 70% majority stake in Cementos Inka, a family-owned cement producer in Peru. The deal is designed to reinforce the group's position in South America and secure additional production capacity and distribution channels in a growing market.
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Planning certainty also arrived from Northern Europe. Heidelberg Materials obtained a 30-year permit from Sweden's land and environmental court to continue quarrying at its Slite site on the island of Gotland. The raw material extracted there underpins local cement production and is intended for long-term use.
Buybacks Continue as Analysts Stay Bullish
Alongside these operational and strategic moves, the company kept up its share repurchase program. Between September 7 and September 11, Heidelberg Materials bought back a total of 334,909 of its own shares on the market.
Analysts, for their part, remain constructive despite the gloom in the European construction sector. JPMorgan left its rating at "Overweight" on Tuesday of last week, reaffirming a price target of EUR 225. Berenberg had already confirmed its "Buy" recommendation on September 8, with a target of EUR 215. Both houses thus see the fair value of the building materials producer well above its most recent trough.
Market Still Unconvinced
Equity investors have yet to embrace that optimism. The stock closed Friday's session at EUR 144.15, leaving it just 0.4% above its 52-week low — a level of EUR 143.60 touched on September 18. Since the start of the year, the shares have shed 36%.
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