RHI Magnesita and Morgan Advanced Materials have worked together to innovate thermal performance in steel treatment ladle applications through the development of an Advanced Insulation System.

This collaborative approach brings Morgan’s expertise in thermal insulation together with RHI Magnesita’s refractory expertise in molten-metal applications, to address one of the industry’s most persistent challenges: applying high-performance insulation in torpedo cars, tundishes, and ladles.

Environmental impact, operational efficiency, and personnel safety are core pillars of modern iron and steel production – and increasingly decisive factors in molten-metal processing and transfer operations. While Morgan’s products already deliver proven thermal performance in other process areas, deploying those products in these extreme environments has traditionally been difficult.

Existing solutions are often seen as ‘partial fixes,’ limited by the harsh thermomechanical demands of the environment. However, the collaboration between RHI Magnesita and the Thermal Ceramics business of Morgan Advanced Materials has broken this cycle. Unlike many incremental initiatives, this collaboration represents a genuine innovation milestone. One of the few supplier-driven ideas to evolve into a strategic market offering aimed at customers in Europe and CIS.

By combining Thermal Ceramics’ unique dual-layer insulating backup with RHI Magnesita’s industry-proven dense refractories, the Advanced Insulation System delivers high-performance insulation without the traditional trade-offs. Its compact profile ensures that thermal efficiency is achieved without increasing total lining thickness, allowing for seamless integration into existing ladle designs and beyond.

Measurable impact – technically proven, economically relevant

The Advanced Insulation System is a customisable solution engineered to deliver five key strategic advantages:

• Enhanced safety: Lower steel shell temperatures reduce thermal strain and minimise shell deformation, enabling a longer lifetime.
• Energy optimisation: Enables lower tapping temperatures, reduced energy consumption at the ladle furnace, and shorter pre-heating cycles.
• Operational agility: Facilitates longer holding times without compromising melt integrity.
• Metallurgical quality: Ensures superior temperature consistency and stability throughout the melt.
• Maximised throughput: Creates the potential to increase ladle capacity by optimising (reducing) dense refractory permanent lining thickness.

Despite these advantages, concerns are often raised regarding the potential ‘overheating’ of the working lining. It is sometimes assumed that additional backup insulation may accelerate refractory wear by increasing average lining temperatures. Through targeted material selection and system design, RHI Magnesita and Morgan’s Thermal Ceramics business have demonstrated that this risk can be effectively mitigated; a fact confirmed by real-world industrial trial data.

Read on to learn about these benefits in practice and the measurable performance gains under real production conditions.

Technical Validation, Trials and Market Readiness

The Advanced Insulation System was validated through a structured industrial trial program conducted under real steelmaking conditions. This validation focused on thermal stability, quantification of energy savings, and confirmation of operational robustness in direct comparison with a conventional ladle insulation solution.

The trial was executed as a direct comparison using newly relined steel ladles equipped with RHI Magnesita refractory products and operated under identical process conditions in the same period. Key performance indicators included steel shell temperatures, energy consumption at the ladle furnace, and temperature stability during ladle circulation. Data were collected at both the Electric Arc Furnace and Ladle Furnace, supported by defined shell temperature measurements to ensure transparency and comparability.

The results confirmed the performance benefits of the Advanced Insulation System. Electrical energy input at the ladle furnace was reduced by approximately 7-8% in specific energy consumption per ton of liquid steel, considering the pilot customer’s operating conditions. In parallel, steel shell temperatures were significantly lower and more stable, with an average reduction of approximately 11% compared to the conventional insulation concept.

No negative effects were observed with respect to refractory wear, slag behaviour, or installation effort, confirming that the system can be implemented without changes to established operational practices. These results provide clear proof of concept for the Advanced Insulation System.

Building on this successful industrial validation, RHI Magnesita and Morgan have initiated an extended trial phase to confirm performance across a wider range of steel plants and operating conditions. This phase supports a structured market introduction and ensures that the Advanced Insulation System enters the market as a technically proven, industrially ready solution.

“This collaboration is a perfect match. It reflects exactly what our 4PRO model stands for – performance, partnership, people and planet. Achieving around 8% energy savings without requiring operational changes or additional CAPEX is truly impressive. It delivers measurable value to our customers while contributing directly to CO₂ reduction.”

Constantin Beelitz
Regional President Europe & CIS RHI Magnesita

“RHI Magnesita has been a valued customer of Thermal Ceramics for many years, but this project allowed us to evolve that relationship into a true strategic collaboration. By combi-ning our unique dual-layer insulation system with RHI Magnesita’s proven refractory solutions, we are offering something genuinely differentiated in the market.”

Len Holtkamp
Managing Director Thermal Ceramics EMEA – Morgan Advanced Materials

Spreading the word and shaping what’s next

As outlined in this article, the Advanced Insulation System has been successfully trialled in European steel plants and continues to operate in live production environments. Following its official launch, the solution is now commercially available. For further information or to discuss implementation opportunities, customers are encouraged to contact RHI Magnesita directly.

In the coming months, a series of coordinated initiatives – including newsletters, technical webinars, and industry conferences – will further highlight the system’s benefits and real-world performance. A key milestone will be its presentation at the SMR – Steel Meets Refractory Conference in April 2026, where Daniel Sipos, Technical Marketing Manager at RHI Magnesita, will talk about insulation concepts in steel ladles and share insights into the technology and its industrial validation.

This collaboration marks not only a milestone in technical expertise but also the beginning of a shared journey toward redefining refractory performance in molten metal transfer applications.

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RHI Magnesita is celebrating a remarkable milestone with Stahlwerk Thüringen: 30 years of successful collaboration through a comprehensive Full-Line Service partnership – a service model that extends far beyond the supply of refractory materials.

Since 1995, RHI Magnesita has been a reliable partner to Stahlwerk Thüringen, managing the complete refractory lining of all applicable aggregates at the Steel plant. From engineering and material supply to installation and ongoing condition monitoring, the Full-Line Service ensures maximum process stability, operational efficiency, and equipment availability throughout steel production. This comprehensive approach is guided by RHI Magnesita’s 4PRO philosophy, which holistically enhances partnership, performance, people, and the planet—as reflected in solutions like the 13QC slide gate system, which extended product lifetime, reduced change-out times, improved automation, and minimized waste.

“Thirty years of collaboration are a strong testament to trust, technical excellence, and continuous development,” emphasizes Stephan Kröll, Head of Sales Steel Germany, RHI Magnesita. “This partnership is a prime example of how ongoing innovation and service orientation lead to long-term success and reflects the essence of RHI Magnesita’s 4PRO philosophy.”

Frank Wagner, Head of Production at Stahlwerk Thüringen GmbH, also reflects on the teamwork: “We proudly look back on three decades of business relationships and numerous successfully completed projects. Especially in light of the current challenges in the steel market, RHI Magnesita’s efficiency, agility, and adaptability are crucial to our competitiveness.“

30 Years of Technological Milestones
This joint success story is marked by numerous innovations and investments, including:

• 1995: Project launch and steel plant commissioning with first project leader Dr. Klaus Haufe
• 2000: Conversion of ladle lining to the VILL system (Casted Lining)
• 2004: Annual crude steel production exceeds 1 million tonnes for the first time
• 2010: Project handover to second project leader Ralph-Per Scheliga; workforce integrated into FLS team
• 2016: Introduction of TUNFLOW impact pot based on CFD analysis
• 2019: Modernization of the VILL system and introduction of the “Ankerdoor” high-performance door block
• 2022: Handover to new project leader Uwe Stummhöfer-Jähnichen & implementation of 13QC slide gate system, with 100% refractory supply by RHIM
• 2024: Completion of infrastructure expansion project (Investment Volume: €700,000)
• 2025: Acquisition of Brokk 520 demolition machine and Ankertun CS machine

Looking Ahead to 2030
Both partners continue to pursue technological advancement. Upcoming projects include the development of a high-pressure water jet milling system for ladles, a new Terminator XL, and a dedicated ladle gunning manipulator to further enhance automation and workplace safety.

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We are proud to announce that RHI Magnesita has achieved a significant improvement in its EcoVadis ESG rating, reinforcing our position as a global sustainability leader in the industrial sector.

EcoVadis updated our ESG rating yesterday, and our overall score has risen by 3 points, placing us in the 97th percentile worldwide. This means our sustainability performance now equals or exceeds that of 97% of over 150,000 companies assessed by EcoVadis across more than 185 countries.

This improvement also continues to unlock annual interest savings of approximately €500,000 through our sustainability-linked financing facilities — demonstrating how strong ESG performance translates into tangible financial value.

Reflecting our strategic focus on sustainability as a key driver of business performance and long-term impact, this year’s score was boosted by improvements in three critical areas.

Key Drivers of Progress:

• Environment: +6 points
• Ethics: +4 points
• Sustainable Procurement: +5 points

Since 2021, RHI Magnesita’s core loan facilities are directly linked to our Ecovadis rating, highlighting our commitment to continuously progress with our sustainability strategy.

EcoVadis is the world’s largest and most trusted provider of business sustainability ratings. Its methodology evaluates companies across four categories: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.

Widely used by global customers, financial institutions, and supply chain partners, the EcoVadis rating plays a key role in strengthening credibility, comparability, and transparency in ESG performance — making it an essential benchmark for our stakeholders.

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As the global drive for greener steelmaking gathers momentum, RHI Magnesita is proud to support this transformation by partnering with Stahlwerk Thüringen (SWT) in Germany. In alignment with SWT’s green steel strategy—which includes using renewable energy sources and continual efficiency improvements—recent industrial trials have demonstrated that high-alumina circular metallurgical additives in combination with a slag engineering solution can significantly enhance the desulphurisation process in steel production. Detailed in the latest paper published in The Bulletin, these trials showcase operational improvements and notable environmental benefits, marking a key step forward in sustainable steel production.  

Enhanced Slag Engineering with Circular Additives  

Steelmaking currently accounts for over 7% of global greenhouse gas emissions, underscoring the urgent need to decarbonise the industry. Traditionally, steel ladle desulphurisation has relied on conventional fluxing agents such as calcium aluminate additives and fluorspar (CaF₂) to achieve the desired reactive slag characteristics. However, these materials present environmental challenges, including a high carbon footprint and issues with refractory wear.  

In a pioneering industrial feasibility study conducted by RHI Magnesita and MIRECO at SWT, traditional fluxes were replaced with a high-alumina circular metallurgical additive (<10% CFP of usual additives) derived from recycled refractory material.  Utilizing RHI Magnesita’s comprehensive metallurgical consulting and advanced e-tech slag modelling tools, the trials achieved an optimal balance between desulphurisation rate, additive application, slag disposal costs, and purging gas consumption. This innovative approach not only maintained effective desulphurisation within the same treatment time but also delivered significant cost savings—estimated at over €1 million per year—and reduced the overall carbon footprint.  

Sustainable Impact and Future Outlook  

This breakthrough reinforces the value of circular raw materials in the steelmaking process. By repurposing used refractory products, the new approach enables a reduction in the reliance on virgin inputs and supports closed-loop recycling. MIRECO further contributes to sustainability through its comprehensive range of eco-friendly additives and the “CERO Waste” service, which facilitates the reintegration of spent refractory materials into the supply chain. This service complies with the European Waste Framework Directive by optimising refractory collection, material sorting, and recycling to minimize landfill waste and decrease CO₂ emissions.  

The partnership between Stahlwerk Thüringen, RHI Magnesita and MIRECO exemplifies how innovative process improvements and circular economy practices can drive both operational excellence and environmental stewardship in the steel industry. For those interested in a deeper dive into the trial specifics, technical details, and further discussion on efficiency optimisation, please refer to the full paper available here. 

Embracing circular metallurgical additives not only bolsters the green steel initiative but also paves the way for a more sustainable, cost-effective future in steel production. If you are interested in circular metallurgical additives, please get in touch with a sales representative. 

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RHI Magnesita’s Low CO₂ Gunning Mixes

RHI Magnesita has been developing sustainable refractory solutions, focusing on gunning mixes that incorporate circular raw materials to reduce the carbon footprint. Our efforts have resulted in gunning mixes with a 30 -85% reduced carbon footprint in EU, CIS, and Türkiye, reducing  customers’ Scope 3 CO₂ emissions. This initiative is part of a broader commitment to sustainability and environmental stewardship in the refractory industry.

About the ANKERJETY- Series 

RHI Magnesita’s ANKERJET Y line, a well-established brand in sustainable gunning mixes, is based on MgO-C circular raw materials. Currently, the brand is produced in Veitsch and is mainly available for the European market. The portfolio includes eight distinct product variations, specifically designed for use in EAF, BOF, and steel ladles, ensuring optimal performance.

ANKERJET YW12-AT stands out as an innovative recycling solution that replaces traditional sintered magnesia formulations with a cutting-edge circular MgO-C concept. It is designed for the hot repair of ladle linings through direct gunning, which has proven to be one of the most effective methods for extending ladle lifespan. The ANKERJET YW12-AT gunning mix incorporates up to 30% circular raw material, successfully displacing traditional brands without any loss of performance.

From Development to Successful Implementation

RHI Magnesita has successfully introduced the innovative ANKERJET YW12-AT brand at a key customer site in Southern Europe, marking a significant advancement in sustainable refractory management. This initiative is part of our commitment to circular economy practices, as RHI Magnesita manages total refractory solutions.

In a groundbreaking test conducted with 100-ton ladles, the product demonstrated excellent adhesion, minimal rebounding, and superior heat management capabilities—performance that met and exceeded expectations.

Over five days, a dedicated team conducted extensive testing, applying 24 tons of the material across 12 ladles and 21 different application samples. The results were compelling, with operators reporting that ANKERJET YW12-AT adheres better than conventional products, even under more challenging conditions in the slag line of the ladle.

The positive outcomes have prompted the steel plant managers to authorize a transition in their product portfolio. Beginning June 2024, ANKERJET YW12-AT has started to replace traditional products as the standard offering, allowing for the substitution of 900 tons of conventional material with a circular solution. This shift is projected to prevent approximately 500 tons of CO₂ emissions annually, equivalent to 12 turns by truck around the world!

By adopting ANKERJET YW12-AT,  customers can reduce their CO₂ emissions by up to 30% per ton of installed material compared to virgin brands. This innovative solution represents a transformative step in the market.

If you are interested in knowing more about RHI Magnesita’s sustainable gunning mixes, please visit Sustainable Refractory Solutions—New Gunning Mixes Containing Circular Material | RHI Magnesita.

For more information about the evolution of ANKERJET YW12-AT or similar products available in your region, please do not hesitate to us. 

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Hello Stefan, Season’s Greetings to you! What are the first things that come to your mind when you hear the words: success, Christmas, RHI Magnesita?

Season’s greetings to you too and to all our colleagues, customers, investors and partners. To me success is safety, resilience, and progress; Christmas is about community of people, gratitude – from a business perspective all these success and Christmas elements come together in RHI Magnesita: global, responsible leadership.

If you would like to host a Christmas holiday party for the whole of RHIM, what would be the theme?

The theme I would choose this year is ‘Building the Future Together Now,’ a concept that not only celebrates our past achievements but looks forward with optimism and purpose. This theme embodies a shared vision—a commitment to working together toward a future shaped by digitalization, delivering progress, cleaner environment and meticulous execution. It would highlight a kind of collaboration, where every contribution matters and strengthens our collective success. It underscores our joint commitment to safety as a cornerstone of everything we do, ensuring the well-being of our people and communities. It would place a strong focus on sustainability, reminding us of our responsibility to protect and preserve resources for generations to come.

If you could give your team one superpower for the new year, what would it be and how would it help the company?

If I could grant them a superpower, it would be the gift of fast decision making: the world has become so uncertain, that the courage to take decisions with some uncertainty has become key. Combined with the ability to anticipate and adapt to changes as they occur with again a swift decision. This would empower us to stay ahead of external challenges and continue to lead the industry with confidence.

How would you sum up the year 2024 for RHIM in one sentence?

2024 was a year of great hope which descended to be one of the most challenging in decades: the continued market downturn, the uncertain geo-politics, and mounting levels of bureaucracy are testing our agility and resilience. We are challenged to find innovative ways to sustain our business in order to successfully create value for all our stakeholders.

How has the global economic landscape influenced the company’s strategic decisions this year?

Profoundly! Key factors include the ongoing demand downturn, geopolitical disruptions, increasing trade barriers and structural shifts in major economies. These, together with a prolonged industrial stagnation, rising protectionism, the decline in traditional supply chains and structurally rising, but still volatile, raw material and sea freight cost have compelled us to rethink. For instance, the structural transformation in China from a supply and volume – driven to a demand, quality & value – driven economy has created short term imbalances in global trade, further complicating the business environment. Western economies are experiencing an industrial recession due to reduced demand in construction and transport sectors, while even previously optimistic regions like India and the Middle East are witnessing short-term weaknesses. In response RHIM has emphasised adaptability, discipline, and innovation. Recognizing overcapacity as a pressing issue, RHI Magnesita has prioritized value-addition strategies, focused on sustainability, and pursued acquisitions. This approach reflects a strategic adaptation to mitigate the uncertainties of a transformed global economy​.

According to you, what were the main achievements of RHI Magnesita in 2024?

Despite our own internal subjective disappointment with the year, objectively we’ve continued to demonstrate operational and financial resilience through the dedication and hard work of our teams. As the global leader in heat management, we have not stood still but are using this period to prepare for the future. When our customers choose RHI Magnesita, they choose high performance products and services for their applications, a collaborative relationship based on the true spirit of partnership, a team of people upholding commitment to safety and continuous improvement of their production, and a company that is actively pursuing low-carbon and circularity initiatives to make our planet sustainable. These principles are at the core of our new holistic solution contract named 4PRO. Internally, we have made huge progress in upgrading our global digital architecture and connected delivery platform: RHIM is investing over €100m until 2027 to re-build our global end-to-end value chain for a step- change in improving our service to our customers.

The safety and well-being of our people continued to be our top value. This year we have started to fundamentally transform our safety culture in order to achieve zero accidents in all of RHIM’s production plants and at all of our operations at customer sites. Furthermore, with almost €1m of personal donations as a starting fund, RHIM’s employees & Board of Directors have instituted RHI Magnesita HELP – an independent non-profit association that offers fast, unbureaucratic support for persons and their families around the world who have been affected by work-related accidents. The scope includes RHI Magnesita, its operating communities, its business partners, contractors, customers, and suppliers.

The refractory industry is by nature a ‘hard-to-abate’ industry, but we are committed to seeking new ways to eliminate CO2 emissions from our operations and our global supply chain in the long term. Since 2018, we’ve delivered positive change: Ongoing investments in CO2 emissions avoidance and Carbon Capture, Utilization and Storage has resulted in 1.6 Mt CO2 emissions savings since 2018 (more than 20% of our scope 1, 2 and 3 emissions). We have made significant investments in recycling: 13.2% of the raw materials we now use globally comes from our customers « spent refractories ». We aim to take this to 15% by the end of next year and to 20% in 2030. This requires ongoing technology development to uphold the best refractory performance in the world. We are looking forward to a “circular” collaboration with all of our business partners. Our customers have validated RHIM’s sustainability leadership in the industry during 2024 by awarding us several very large green steel projects, for Direct Reduction, Open Bath, Electric Arc, and Basic Oxygen furnaces, all essential for the large-scale adoption of green steel production globally.

Customers have also shown strong satisfaction with the ongoing improvements in the offering, as evidenced by record-high net promoter scores and PIFOT (Produced in Full and On Time) metrics, which reached new peaks in Q3.

During 2024, we continued to seamlessly integrate the people, products, and processes of 9 companies that we’ve acquired in last 3 years, creating synergies and driving value for all our stakeholders. Our acquisition strategy continues with the pending acquisition of Resco Group (enterprise value of up to $430 million), with anticipated completion in Q1 2025.

In 2024, we embarked on a journey to drive better service delivery for customers and create more career opportunities for our employees working in shared services. We have transitioned most of our global shared services operations to Capgemini, a global leader in process design, digital transformation, and shared service operations. Capgemini will play a key role in supporting the implementation of our new ERP system, which is expected to be delivered between mid-2025 and mid-2027. Many thanks to our colleagues in the shared service centres for their past and future dedication and performance.

Year after year, RHIM’s Global Trainee Program is becoming attractive to more and more people. This year, we saw a record number of applicants, and 20 trainees joined RHIM, most of them women. We are thrilled that these young and talented individuals have chosen us as the starting point for their professional careers.

What goals are on your vision board for yourself and the company for next year?

I would like to see every aspect of RHIM become much safer. For this it would be crucial for everyone at RHIM to play an active part in the safety culture transformation. After that, I would further like to see us strengthening our core culture values to be more customer focussed and deliver across our growing footprint everywhere. 

I wish that RHIM accelerates the business transformation driven by the digital transformation. This will make us future ready so that we can lead the industry through the 21^st century. This requires a further improvement of operational excellence and supply chain delivery performance and the optimisation of our “administrative factory”. 

We will continue to focus on disciplined growth through partnerships and acquisitions. The integration of products, processes and especially people of the acquired business will continue be a clear priority. This also allows us to explore further optimisation of our production networks to improve customer experience, adapt to the changing global market environment and of course to deliver shareholder value.

We will continue to build industry opinion and administrative policy support for decarbonizing the refractory value chain, especially the raw materials, together with our suppliers, and invest on new technologies for carbon capture and utilization and recycling for making positive impact on emission control.

Making our industry more attractive for young talent worldwide, particularly women must continue. Diversification of our talents and leaders is essential for sustained performance growth for a global company that we are now.

Personally, I remain committed in the new year to fostering a culture of openness, collaboration and personal accountability to deliver. I hope I can inspire all of RHIM’s employees to achieve these goals, ensuring together that we leave a positive impact.

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A commentary by Stefan Borgas, CEO, RHI Magnesita

This year has been dubbed “the year of elections”.  By the end of 2024, 64 countries will have or have had new governments or administrations including the EU, US, Japan, UK, France and India. Businesses worldwide are anticipating what the possible policy changes will be and will mean for them. Especially critical industries could become crucial for an economic recovery.

The world has changed

To fully understand the challenges, we must recognize the geo-political disruptions have changed the world. From our global perspective at RHI Magnesita we clearly see that a series of shocks – including the pandemic, regional wars, the rise of protectionism measures on climate change and immigration – have collectively battered long-established supply chains and global trade networks. The industrial sector, especially heavy and basic industry in most global economies has been in stagnation for more than two years; a recovery is not at sight. Service and IT sectors cannot in the long-term balance out the industrial stagnation or even downturn. A prolonged, much more uncertain environment is testing the way we plan and manage global businesses. The global economy of the past 40 years is no more; industries must be prepared to find new answers and solutions.

The mission-critical refractories industry is feeling this seismic shift keenly. Alarm bells should ring with policymakers and industry leaders around the world, if this industry were to suffer materially. 

Refractories are highly engineered materials designed to withstand very high temperatures well in excess of 1,200° C. They coat the inside of blast furnaces, crucibles and kilns which produce steel, aluminium, cement, glass, chemicals and many other materials that make-up the building blocks of modern societies. They are a very small part of the cost base but completely essential to the industrials sector which is the backbone of economic growth.

The continuing demand downturn and its impact

Another year that started with hopefulness for the refractory industry has taken a turn in recent months. Continuing poor macro-economic conditions, new economic policy measures and trade barriers have resulted in a market downturn in almost every geography due to the downturn of user industries. Even regions such as India, Southeast Asia and the Middle East, which we had anticipated to be “bright spots”, have also shown signs of short-term demand weakness.

Western economies are experiencing an industrial recession due to shrinking demand from the construction, transport and machinery sectors. The structural reduction of the industrial sector in China, the largest consumer and producer of metals, glass and cement, has led to an imbalance in world trade. The country is going through a deep structural shift from a supply-driven economy to a demand driven economy – this is painful, it will take time, and it will cost a lot of money, patience and adjusting – for the Chinese as well as for the entire world. Low domestic consumption has accelerated Chinese steel, metals, glass, and refractory exports, which cannot be easily absorbed due to low demand in destination economies.

Some analysts and commentators do not forecast any improvement in the demand situation for at least the next 12-18 months. This would then result in more than three years of continued downturn or industrial recession. Others are even beginning to question whether demand will ever return to prior levels.

The global demand downturn is further complicated by the recent increase in sea freight costs, transit times and reduced freight reliability arising from the Red Sea crisis, low water levels in the Panama Canal and port congestions. Rising bauxite and alumina prices due to a supply shortage for example, have resulted in cost inflations of alumina-based products, to reflect the higher cost of raw materials. The same is about to happen in magnesite based raw materials too. Developed markets continue to face the incremental challenge of labor cost inflation which is still not being absorbed.

With raw materials making up ca. 70% of total cost of goods, we must pass these inflationary cost increases on to our customers to reasonably protect our already thin margins. Industry-wide, capital expenditure and innovation efforts are already at a dangerous minimum.

The repercussions of a widespread closure of unprofitable refractories plants or production lines could be severe. If, and when, the turning point for an economic recovery comes, world leaders will be bitterly disappointed if steelmakers are hamstrung by shrunken refractories supply capability. So, one would assume that the issues impacting the future of the refractories industry would be high on policymakers’ agendas. Yet still, the refractories industry – the essential ingredient for making our cars, houses, plastics, even paper – does not have the public attention it justifies.

In Europe, Ursula von der Leyen’s new EU Commission announced in September signaled a commitment to reinvigorate Europe’s industrial strategy, but this will be futile if the needs of the refractories industry aren’t taken into account.

For example, RHI Magnesita is calling for a review of the Critical Raw Materials Act to include high-purity magnesia and dolomite, two key refractories precursor minerals, to ensure that refractories production in Europe remains financially viable and innovation continues.

The refractory overcapacity

But as politicians change and policies get modified, I also encourage our industry to help itself:

We today have a self-inflicted overcapacity problem which must no longer go unaddressed. A number of major producers have been progressively building out new greenfield plants in a flat, no-growth industry with pricing challenges. We estimate that excess capacity is running at some 40% above demand and, shockingly, growing. For example, India alone is seeing an addition of almost 300 kt of new greenfield capacity in the next 2-3 years. Reasonable growth of customer demand in India has led to a frensy race for new capacities by many refractory players in India jointly producing very large overcapacity. How rational is this in the context of the macro challenges outside of our industry’s control? RHI Magnesita has been pursuing growth via an M&A strategy while focusing on bringing new innovations and greener production methods to the industry.

Decarbonization needs policy support

Value-add instead of old-style mass production must become a priority. Innovations including refractories recycling or refractory life extension through digital data usage must become more widespread to improve the sustainability of our product and help our customers improve theirs. The opportunity if we focus on innovation is still there.

The Governments and policy makers can help here as well. Within RHI Magnesita’s own sustainability agenda we have ambitions to take a lead on hydrogen adoption and carbon capture and utilization – neither of which will be possible without policy intervention to support new technologies, risk capital to allow first-mover industrial installations, as well as new infrastructure that will benefit a wider industrial decarbonization journey and help the industrial sector to grow again.

Refractories are an overlooked ‘critical’ global industry, a facilitator of the building blocks of modern society. Today, macro crises have led us to a highly challenging juncture. It is essential that we adapt quickly to help power a global economic recovery, and for this we need horizontal and vertical private sector collaboration and public sector recognition, support and engagement.

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RHI Magnesita is thrilled to announce that its Ecovadis rating for 2024 has increased by 4 points to an impressive 76! This ‘Gold’ rating places RHI Magnesita in the top 5% of all companies rated by Ecovadis.

Since 2021, RHI Magnesita’s core loan facilities are directly linked to our Ecovadis rating, highlighting our commitment to continuously progress with our sustainability strategy.

This achievement is a testament to the hard work and dedication of the entire RHI Magnesita team. Together, we will continue to strive for excellence and make a positive impact on our environment and community, driving meaningful change and setting new standards in sustainability!

Since its founding in 2007, EcoVadis has grown to become the world’s largest and most trusted provider of business sustainability ratings, creating a global network of more than 130,000+ rated companies. The EcoVadis sustainability assessment methodology is an evaluation of how well a company has integrated the principles of Sustainability into their business and management system. For more information please visit: https://ecovadis.com/

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In this article, the CEO of RHI Magnesita, Stefan Borgas, sums up the calendar year and shares his New Year resolutions. Here’s how a business leader analyses the current situation and approaches setting goals for the future. 

What were the major events of 2022, which affected the market and your company’s strategy the most?  

The situation in Ukraine and its consequences have been a major unexpected challenge, especially for our European customers and our own European plants. As early as in March 2022, in our 8 European plants, we replaced 50% of the energy needs with alternative fuels; the investment was over EUR 8 million.  

Even beyond Europe, the conflict has further weakened the fragile economic post-pandemic recovery, and increased energy cost in many regions. 

In the Americas, we have moved closer to our customers by building-up significant inventories, thus improving our delivery performance. In Brazil, we have invested in plants to enhance our cost position and boost product quality. In India, we have followed the market growth and established RHI Magnesita India as a responsible market leader. In addition, our business in China supports the country in overcoming COVID-19.  

We must soberly admit that the disruptive environment has become today’s and tomorrow’s reality. Our answers to volatility are customer proximity, flexibility, and speed. Evidently, more adaptations triggered by thus far unknown geopolitical changes will become necessary in the next years. With the excellent and growing RHI Magnesita team – I am proud to say – we are again and again implementing smart solutions to all the emerging challenges.  

What were the main achievements of RHI Magnesita in 2022?  

 Despite the turbulence, our great team achieved a lot – here are a few highlights:  

• We acquired the Indian refractory business of Dalmia Bharat Refractories Limited, one of the most prominent refractory producers in the country. We also acquired the technologically advanced refractory business of Hi-Tech. Once again, I am happy to welcome amazing new people in the RHI Magnesita family!
• RHI Magnesita India became a top-ranked refractory company in the Fortune India Next 500 list.
• We welcomed Sörmaş in Türkiye in our global RHI Magnesita team, to service our Turkish customers faster, better, and with more tailored solutions. 
• Together with Horn & Co. Group, we launched MIRECO – a leading secondary refractory raw materials platform in Europe. The new team has also launched a new recycling centre in Austria.
• As part of the EU Horizon program, we became the lead of the project “ReSoURCE”, aimed to innovate the full process chain of refractory recycling.
• Our dolomite mine in Chizhou, China, was awarded the Green Mining Certificate – RHI Magnesita is the first and only foreign company receiving this certification so far.
• We officially restarted our plant in Mainzlar and will set up a green refractory plant in due time.

We will take these good results as a fuel to boost ourselves, because there is always a room to do more; and to improve, while listening to our customers.  

How do you see the company grow in 2023 and beyond?  

This year, we marked the 5th anniversary of RHI Magnesita. I’m extremely proud about our company: we secured the role of a responsible market leader. Our corporate culture of global collaboration, innovation, accountability, and responsibility, as well as an open, friendly and direct communication for the benefit of our customers, continue to be embraced by all our 15.000 employees.  

Our customers are our top priority – and we deliver! RHI Magnesita’s worldwide investments in additional inventories since the end of 2021 account for, approximately, EUR 700 million. We ensure that our clients remain supplied with high performing, essential refractories, and thus can overcame the extreme supply chain volatility.  

Furthermore, since 2020, we have invested more than EUR 300 million additional funds into our production network in the USA, Europe, China, India, and Brazil, to improve efficiency and product quality, strengthen regional supply capabilities, and increase flexibility. This massive capital commitment to build a sustainable refractory service business is wholeheartedly supported by our owners. 

Another integral part of our culture is the health and safety of our people. Our target is nothing else than zero accidents, and we have developed strong programs to pursue it.  

Financially we are on track to achieve all our targets for 2022. And now, we are preparing for a slightly gloomier economic environment in 2023. 

How do you hope to impact the industry in the long run?  

I would really like to highlight our sustainability efforts. We are truly passionate about progress in this area. In 2022, we have further increased the use of secondary raw materials. In June, RHI Magnesita already exceeded its 2025 target and recorded a recycling rate of more than 10%.  

We are now investing EUR 50 million into discovering new technologies: we must, and we will, eliminate all our CO2 emissions eventually. We are a true sustainability frontrunner in the refractories world and beyond.  

What are your professional and personal New Year resolutions?  

Professional:

• To always improve my style: get things done; stay friendly, approachable, agile, and creative.
• To attract young talents to RHI Magnesita and the industry.
• For our employees: to improve their working conditions and make RHI Magnesita fun to be at!
• For our customers and the world: to drive sustainability in all areas. 

Personal:

• To spend more time with my family and friends.
• To stay healthy, rested, fit and curious.
• To engage with societies (especially young and old people) to drive sustainability together. 

What is the best lesson you have learned in 2022?  

“People overcome difficult situations together. 
People make a difference.”  

On this note, I would like to thank all our employees, partners, investors, customers, suppliers, and just supporters: you make me proud and happy! The success of RHI Magnesita is possible because of your endless passion and engagement. We have overcome so many setbacks and achieved so many goals together. Thank you again for being such a great community.  

On behalf of the RHI Magnesita Executive Management Team and our Board of Directors, I wish everyone a wonderful and peaceful year-end and energy refuelling. Happy holidays! 

The post A Year in Review: An Interview with RHI Magnesita CEO Stefan Borgas appeared first on RHI Magnesita.

“The euro listing in the prime market of the Vienna Stock Exchange supports our growth strategy in an ideal way. We still have a lot of plans in the areas of research and development, recycling and sustainability. In Vienna’s top segment, we can meet the great interest of investors in Austria and abroad even better,” says Stefan Borgas, CEO of RHI Magnesita.

A total of 40 Austrian prime market companies commit voluntarily to meeting the highest transparency requirements. These include, for example, the reporting languages English and German, half-year financial reports according to IAS 34 standards and the declaration of compliance with the Corporate Governance Code.

The post RHI Magnesita listed on prime market of Vienna Stock Exchange appeared first on RHI Magnesita.