RHI Expands Its Raw Materials Base and Acquires ZAO Podolsk Refractories
He expects revenues to increase slightly compared to the first quarter with an EBIT margin of 9 % and exchange rates remaining unchanged. Due to a higher order level, RHI will be able to repeat the revenues of the first quarter in the second quarter and raise profitability to 9,5 %. On 16 June 2011, the full acquisition of the Russian refractories manufacturer ZAO Podolsk Refractories, which produces fused cast bricks for the glass industry, was completed. Moreover, the investment program for 2011 was explained in further detail: apart from building a plant in Brazil and expanding capacity in China, it also includes increasing the level of self-supply with magnesia raw materials to approx. 70 %. Jensen also reported that the entire investment budget 2011 will be financed by the company’s cash flow and borrowed capital, thus ruling out a capital increase in the foreseeable future (07/2011).