Press Release

RHI Magnesita announces 2020 results and €50m investment in CO2 reduction

08. March 2021

On the occasion of the Company’s Full Year Results release, RHI Magnesita announces a new sustainability program and reports resilient financial performance despite a challenging market environment

 RHI Magnesita, the leading global supplier of refractory products, systems and solutions, today announces the Company’s Full Year Results for 2020. In a challenging year for the industry, RHI Magnesita increased liquidity and maintained business continuity while at the same time ensuring safe working conditions for all employees and business partners. In 2021, the Company reinforces its commitment to sustainability and accelerates plans to become a carbon neutral business.

Sustainability leadership accelerated

The Company is stepping up efforts to achieve its aspiration to become CO2 neutral. For this matter, the Group introduces a major four-year R&D program designed to expand its leading sustainability position within the refractories industry. RHI Magnesita will invest €50 million towards technology research and pilot plant constructions in the next four years, including new technology for the capture of CO2. “We are heading towards a CO2 neutral world,” said Stefan Borgas, CEO RHI Magnesita. “Our pilot projects will enable huge progress towards becoming a net zero carbon business and position RHI Magnesita as a preferred supplier for our customers who are working hard on achieving their own sustainability goals.”

Stable margin performance despite volatile market environment

RHI Magnesita today declares a gross profit margin of 24.4% (2019: 24.5%) and adjusted EBITA of 11.5% (2019: 14.0%). Furthermore, the Company achieved a positive adjusted operating cash flow of €290 million (2019: €359 million), supported by strong working capital management leading to a reduction in net debt to €582 million (2019: €650 million). The Board has recommended a final dividend of €1.00 per share, bringing the total dividend in respect of 2020 to €1.50 per share.

Commenting on the results, Borgas said: “2020 has been the most challenging year that our industry has experienced. Throughout the pandemic, RHI Magnesita has protected the health and safety of our employees, ensured business continuity for our customers and taken initiatives to support liquidity and underpin future profitability. Through one of the severest downturns on record, we demonstrated the resilience of our business model and the outstanding commitment of our people while our strong financial position has enabled us to accelerate investment in our strategic priorities.”

Swift and effective response to COVID-19

From the outset of the pandemic, RHI Magnesita prioritized safe working conditions for all employees and business partners, increased liquidity and secured business continuity. The Group introduced strict infection control measures at all sites, restricted travel and implemented remote working wherever possible. RHI Magnesita continues to supply its customers and addresses their evolving requirements by leveraging digital technology, adapting ways of working, providing flexibility and maintaining reliability. Through decisive management action, RHI Magnesita delivered double digit EBITA margins despite a 23% decline in revenue. Solid cash generation led to reduction in net debt and retainment of a strong liquidity position, with €1.2 billion of cash and available facilities at the year end. “I am enormously proud of how our people have responded to these most difficult of circumstances. All colleagues at RHI Magnesita have demonstrated their ability and desire to withstand very large challenges as they emerge,” stated Borgas. “With our end-markets now showing signs of recovery, we are confident that the business is well-positioned to take advantage of new opportunities as conditions improve.”

Sustained focus on strategic execution

Despite the disruption caused by the pandemic, RHI Magnesita remained focused on delivering its strategy. The Group’s strategy centres around three key pillars:

  • Reducing costs to further improve competitiveness: RHI Magnesita has accelerated its cost initiatives and is on track to deliver €100m of annualized EBITA savings by 2022, with peak capex in 2021.
  • Business model enhancement: Although customer site access has been restricted by COVID-19 precautions, the sales strategies have been actively progressed in 2020. This included expanding the solutions business model and sustainability offering, investing in digital transformation projects, automation and robotics, positioning for growth in new markets, and developing the Flow Control business. RHI Magnesita also formed a strategic partnership with Microsoft to accelerate digital offerings and support new ways of working with customers. The Group continues to anticipate an annual EBITA contribution of €40-60 million by 2022.
  • Driving market leadership: RHI Magnesita identified major opportunities in growth markets such as China and India. During 2020, the Company continued to decentralise global functions to be closer to customers and to implement a ‘local for local’ production model, allowing it to better address regional demand. In addition to organic growth, RHI Magnesita continues to pursue disciplined M&A opportunities in key growth regions and market segments.


RHI Magnesita anticipates steady, month-on-month demand improvement in all its end markets and order book. Whilst volatility and uncertainty are likely to remain elevated in the short term, the overall recovery trends are expected to continue in the Steel and Industrial divisions during 2021. The Group has protected its commercial, operational and sustainability investments throughout a period of difficult market conditions and is well positioned to benefit from these as markets recover.

Financial results






(€m unless stated otherwise) 



Adjusted1 at constant currency



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1 Adjusted figures are alternative performance measures “APM” excluding impairments, amortisation of acquisition intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details are shown in the APM section.

2 Following the introduction of IFRS 16 Leases, 2020 net debt includes the impact of IFRS 16 of €57 million. 2019 adjusted net debt figures are shown including the impact of IFRS 16 (€62 million) to facilitate comparison between reporting periods.




(€m unless stated otherwise) 









Profit before tax



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Follow this link to read the full RNS

Follow this link to find the Annual Report and further material:

About RHI Magnesita

RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. Our purpose is to master heat, enabling global industries to build sustainable modern life. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers globally, with around 12,000 employees in 30 main production sites and more than 70 sales offices. RHI Magnesita pursues an innovative and industry-leading path in technological development and sustainability, including CO2 emissions reduction technology.

The Group maintains a premium listing on the Official list of the London Stock Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit:  


Lisa Fuchs, Corporate Spokesperson & Head of Corporate Communications 
+43 699 1870 6198

Patrizia Pappacena, Vice Spokesperson
+43 699 1870 6443

Matthew Denham, Teneo
+44 7825 735 596