RHI Magnesita buys 65% stake in China’s Jinan New Emei for €40m

RHI Magnesita said it was buying a 65% shareholding in China’s Jinan New Emei for 293 million Chinese yuan (€40m).

Based in Shandong province, Jinan New Emei Industries makes refractory slide gate plates and systems, nozzles and mixes for use in steel flow control, and employs more than 1,300 people.

“The acquisition will enable the group to expand its product range in steel flow control refractories and its solutions contract offering in the Chinese domestic market, both of which are key strategic priorities,” RHI said on Friday, adding that it was expected to be accretive to group earnings.

There would be “substantial opportunities to realise synergies from the combination of Jinan New Emei with the Group's existing refractory business in China”.

Reporting by Frank Prenesti for Sharecast.com