Adaptations in the Production Network of RHI AG
In September 2017, RHI/AT signed a contract with an European refractories supplier regarding the sale of its dolomite business in the European economic area. The sale consists of the production sites in Marone/IT and Lugones/ES. The contribution to revenue of the two RHI plants amounted to roughly EUR 50 million in the financial year 2016, and represents roughly 3 % of the group’s revenue in the year 2016. For the closing of the transaction, the European Commission has to confirm the buyer. Resulting from the transaction, a positive contribution to earnings in the medium single-digit millions is expected in the 4th quarter of 2017. In late August, a contract was also signed to sell the production sites in San Vito/IT and Sherbinska/RU. With the closing of the transaction, the RHI Group divested the production of fused cast refractories for the use in the glass industry, which is associated with high fixed costs. Revenue that was generated with products manufactured at the two plants amounted to roughly EUR 26 million in 2016. The measurement of the disposal group based on the purchase price offer led to an impairment of EUR 1,7 million in the 2nd quarter of 2017. In the 1st half of 2017, production at the site in Aken/DE was stopped for an indefinite period. The Management Board intends to sell or close the plant in order to ensure capacity utilization of the production network.