Newproduction facility of the world's leading refractory company is located in the Industrial District of Queimados, metropolitan region of Rio de Janeiro, with an initial investment of €85 million

RHI AG, the global refractory products leader for the steel, cement and glass sectors, has begun to build its first factory in Brazil, located in the Industrial District of Queimados, part of the Rio de Janeiro metropolitan region.  Investment for its first phase will be €85 million and the factory will create 200 direct and about 400 indirect jobs. The start of production is planned for the third quarter of 2013.

Brazil is highly strategic for the company's global businesses, and the new plant aims to meet the growing opportunities for supplying the steel industry in both the domestic market and South America in general. Queimados was chosen as the hub for the company's operations on the continent because it offers broad logistical advantages – located at the edge of the Presidente Dutra Highway between Rio de Janeiro and Sao Paulo, just 30 km from the port of Itaguaí - and near to major customers of the steel industry. The Brazilian RHI AG plant will occupy 120,000 m².

 "This is the first step in establishing a production platform and an important part of our plan for global growth in the BRIC countries. The proximity of the new plant will allow RHI AG to better serve customers, particularly in the steel industry in Brazil, as well as other major Latin American markets”, says Franz Struzl, CEO of RHI. According to Struzl, "Brazil’s steel industry is growing and we want to benefit as much as possible from this enormous growth, being close to our customers. RHI AG's investment in Rio de Janeiro further confirms the proper stage of development that the state and country have with a decisive contribution from the company to locally generate more jobs and opportunities.”

For Rio de Janeiro State Governor Sérgio Cabral, the RHI investment is a wise decision, since the state seeks leadership in the steel industry - the company’s main customer for refractory products. R$18 billion will be invested in the sector over the next few years. In addition to ThyssenKrupp, CSA Siderúrgica do Atlântico, a 5-million ton plant that began operation last year, two other plants of the same size – one by Chinese company Wisco and another by the Ternium group - will be constructed in Norte Fluminense, at the Complexo do Açu. The sector will also undergo expansions of already-existent plants in other regions of the state, such as the Gerdau plant, which will practically double its production capacity.

The Mayor of Queimados, Max Lemos, reinforces that the new factory will provide local opportunities. "The community of Queimados will fully benefit from this new venture, which will bring many employment opportunities and generation of direct and indirect income," he says.

Production
RHI AG refractory products are essential for industrial growth in the country, as there’s no steel without refractory products. All the aggregates in the hot processes production, such as ladles and blast furnaces need refractory bricks and mixes as linings to withstand temperatures of more than 1,200 degrees Celsius. With the growth of steel in the country, Brazil has become a highly promising field for the company's business, which already accounts for approx. 15% of sales of the domestic refractory business for the steel industry, with clients such as ArcelorMittal, CSN, Grupo Gerdau, ThyssenKrupp CSA, Usiminas and about 5% sales with other industries and customers like Votorantim, Holcim, among others.

It is expected that the new plant's annual RHI AG production will be 60,000 tons. Of this total, more than half will be for the domestic market and the rest shipped throughout Latin America. In 2010, 7% of Group sales were in South America and the intention is to increase this percentage significantly.The company also plans to expand its capacities in a second phase, also creating more jobs. Currently RHI employs around 101 people in a strong sales team that operates in Belo Horizonte.