EANS-News: Planned adaptations in the production network are progressing
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Strategic Management Decisions
Vienna - The planned combination of RHI AG with the Brazilian Magnesita was
approved by the European Commission on June 28, 2017 subject to conditions.
Today, RHI signed a contract with a European refractories supplier regarding the
sale of its dolomite business in the European Economic Area. The sale consists
of the production sites in Marone, Italy, and Lugones, Spain. 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 fourth quarter of 2017.
"With the sale of the two sites, the combination of RHI AG with Magnesita is
also still right on schedule", commented CEO Stefan Borgas. "We expect the
confirmation by the European Commission in the near future."
In late August, a contract was also signed to sell the production sits in San
Vito, Italy, and Sherbinska, Russia. With the closing of the transaction, which
is expected for the third quarter of 2017, the RHI Group divests 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 second quarter of 2017.
In the first half of 2017, production at the site in Aken, Germany, 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. The
inactive assets were impaired by EUR 5.5 million as of June 30, 2017.
"The global network optimization of RHI is progressing. As planned, we are
implementing the individual measures and also optimize our positioning
geographically in every way", Borgas emphasizes.
Further inquiry note:
RHI AG
Investor Relations
Mag. Simon Kuchelbacher, CIIA
Tel: +43-1-50213-6676
Email: simon.kuchelbacher@rhi-ag.com
end of announcement euro adhoc
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issuer: RHI AG
Wienerbergstrasse 9
A-1100 Wien
phone: +43-1-50213-6676
FAX:
mail: investor.relations@rhi-ag.com
WWW: http://www.rhi-ag.com
ISIN: AT0000676903
indexes: ATX
stockmarkets: Wien
language: English