RHI signed a contract to acquire SMA Mineral Magnesia AS (SMA), Norway, today. The purchase price amounts to NOK 100 million (about € 13 million); the purchase contract contains a few conditions, which must be met prior to the closing on or before 31 August 2011. SMA produces seawater-based magnesium hydroxide, which can be processed to fused magnesia.
RHI will subsequently invest up to EUR 70 million in a fusing plant at the site of SMA. Starting in the summer of 2012, RHI will produce up to 80,000 tonnes of high-grade fused magnesia annually in Norway. With this project, RHI is making an important step towards the execution of the raw material strategy and thereby increasing its level of self sufficiency with magnesia based raw materials by 19%points to 61%.