RHI Magnesita announces the acquisition of the Indian refractory business of Dalmia Bharat Refractories Ltd (DBRL) via a share swap agreement, in exchange for 27 million shares in RHI Magnesita India Ltd, a 70 per cent owned subsidiary of the group.
DBRL is one of the leading refractory producers in India with approximately 1200 employees and production capacity of over 300,000tpa, from five refractory plants and raw material sites.
Commenting on the acquisition, Stefan Borgas, CEO of RHI Magnesita, said: "I am very pleased to announce this highly value creating acquisition which will accelerate our development in the fast-growing Indian refractory market. It is another step in the execution of our group strategy. We see material financial and operational benefits from the addition of the Dalmia Bharat Refractories business to our existing network, which will enable us to increasingly serve our customers with a 'local for local' approach in India and offer a broader range of products, in particular in the Industrial segment, in which RHI Magnesita is currently under- represented. This transaction demonstrates our ability to continue to grow our business in India where the outlook for the refractory industry is strong, at a time when demand in other geographies is weakening."
