Austrian-headquartered RHI has reached an agreement with
Intocast Group to take over its dolomite business, in a
divestment that the European Commission imposed as part of
the merger process with Brazilian refractory maker Magnesita,
RHI told IM.
The pool of assets being sold consists of two production
sites, in Marone, Italy and Lugones, Spain.
Stefan Rathausky, spokesperson at RHI,
told IM German refractories producer
Intocast Group will acquire both sites, for an undisclosed
The Marone site comprises of an open-cast mine and processing
facility. The operation produces sintered dolomite. RHI
Refractories Ibérica, the Spanish operation, is a
manufacturing plant producing a number of refractories
In revenue terms, the two facilities contributed with
"roughly €50m ($60.1m)" in 2016, equivalent to 3% of RHI
Group’s revenue for the year, RHI said in a
The company did not disclose the value of the sale, but
said: "Resulting from the transaction, a positive contribution
to earnings in the medium single-digit millions is expected in
the fourth quarter of 2017."
European approval will be required to ratify the sale: "The
European Commission will need to approve Intocast as a suitable
buyer [prior to the closing of the transaction]," Rathausky
In late June, the Commission cleared the merger process
between RHI and Magnesita, but on conditions that certain
operations from both companies be divested.
Fused cast refractories
RHI also announced the divestment of its fused cast
refractories business for the glass industry, with the selling
of two production sites in Italy and Russia.
The company said it agreed in late August on the sales of the
operations in San Vito, Italy and Sherbinska, Russia. The
identity of the buyer has not been disclosed. The transaction
is expected to be completed in the third quarter of 2017.
The sale means the de facto exit of RHI from the business of
fused cast refractories for glass manufacturing, RHI confirmed
to IM. The company said the operation is
"associated with high fixed costs".
The two plants generated combined revenues of €26m in
"The measurement of the disposal group based on the purchase
price offer led to an impairment of €1.7m in the second
quarter of 2017," RHI stated.
The move is unconnected to the Magnesita merger, Rathausky
told IM, adding that it was a "strategy
RHI used to operate a third facility as part of its fused
cast refractories for glass operation (US-based Monofrax),
which was sold last year.
Additionally, the Aken, Germany, facility was mothballed
during H1 for what is described as an indefinite period. The
management intends to "sell or close" the plant to maximise
capacity utilisation across its other facilities.
As of June, the inactive assets were impaired by
Following the completion of the process, RHI and Magnesita
will form a global refractories giant with over 50
facilities globally, and a foothold in Europe, the Americas