RHI acquires 51% stake in Clasil Refractories, India

20. December 2006


Clasil Refractories Ltd. is currently commissioning a refractories plant in Venkatapuram in the province Andhra Pradesh. An extension of the plant to include the production of bricks and mixes, the production of prefab parts and a manufacturing line for slide gate plates is scheduled for mid-2007. The Venkatapuram site has an excellent logistic location approx. 50 km south west of Vishakhapatnam, the largest east Indian harbor, and is optimally positioned strategically with a view to the growing steel and cement industries in east India and possible exports to the Middle East and Asia.

RHI Refractories has become the largest importer of refractories in India, but so far has not operated any local production capacities. The sustained significant economic growth in India and the continuous development of the infrastructure will lead to a substantial extension of production capacity, especially of steel and cement, with the demand for high-grade refractory solutions growing correspondingly. To ensure optimal service for customers in India, it is indispensable for RHI Refractories to further increase its presence in this important emerging market and offer complete package solutions from local production.

In the course of a capital increase, RHI Refractories will initially take over 51% of the shares in Clasil Refractories Ltd.. Having acquired a stake in Clasil Refractories, RHI Refractories now has a first production center at its disposal. In the future, the local sales and service experts of Clasil and RHI will work this important emerging market even more intensively with optimal customer solutions. Clasil management and RHI are looking forward to mutually develop RHI-Clasil as a prime refractory player in India.

The RHI Group will in the future focus exclusively on extending its position as the world market leader in refractories under the RHI Refractories brand. Worldwide, there are good opportunities to sustainably expand the excellent market position and earnings power of RHI Refractories in the coming years. The objective is to increase the revenue of currently approx. EUR 1.3 billion to EUR 2.0 billion by the year 2010 through organic growth and acquisitions.