© RHI Magnesite
In Vienna (kle) Austrian and Brazilian concerns RHI Magnesite, a company that manufactures refractory products for industrial processes (especially steel), reports a good start in the third quarter. Worldwide, steel production has increased – especially in the US, where the profit margin for the company is relatively high. However, growth in Europe slowed down, RHI Magnesita said on Monday.
However, the United States President's Donald Trump's penalty for steel imports did not have a negative effect on their own business. In India, RHI Magnesite recorded an increase of 20 percent in the first three quarters compared to the same period of the previous year, and in China – even from a lower starting level – by as much as 30 percent. Due to stable commodity prices, strong customer demand and synergies, CEO Stefan Borg expects a good consolidated result for the full year 2018.
The new headquarters in Vienna
"We continue in very, very quiet waters, like in the first half of the year," APA told APA in the third quarter. The reason for the steady development is the fact that the RHI Magnesite business depends on the volume of customers' production, not on their prices. Most customers would not be able to produce without RHI products, but their share of the total cost of production for a steel company would be only 2.5 percent. Brand said that volume fluctuations are generally much lower than price fluctuations. Therefore, the RHI Magnesite business is much less cyclical than the often accepted analyst.
RHI Magnesite currently employs more than 14,000 people worldwide in 35 major manufacturing facilities and more than 70 outlets. Last year, the group formed after the merger of the Australian RHI and Brazilian Magnesite in autumn 2017 was sold for 2.7 billion euros. RHI Magnesite is listed on London and Vienna. In turn, Europlaza has its headquarters in Vienna, with 450 employees working together.