Refractory manufacturer RHI has signed a contract to acquire SMA Mineral Magnesia, a producer of seawater-based magnesium hydroxide, for NOK 100 million (approximately
€13 million). The purchase involves some conditions that must be met prior to closing on or before 31st August 2011.

RHI will subsequently invest up to €70 million in a fusing plant at the site of SMA Mineral Magnesia. Beginning from the summer of 2012, it will produce up to 80,000 tonnes of high-grade fused magnesia annually in Norway.

A company statement said: ‘With this project, RHI is making an important step towards the execution of its raw material strategy.’