RHI Normag as at Herøya announces changes in production and organisation through a press release today.
RHI Normag as says in their press release today:
"RHI Normag AS («Normag») is a subsidiary of RHI AG and produces various types of magnesium oxide in its facility at Herøya. The company employs approx. 140 employees.
The main product is «fused magnesia», which is a melted crystal magnesium oxide, one of the most heat resistant materials in the world. Fused magnesia is raw material for RHIs production of refractories. RHI is one of the largest producer in the world of such materials.
RHI AG faces strong and increasing competition in said market for refractories.
To be able to maintain its market position and profitability in this segment RHI AG has been forced to make changes in its product portfolio. The changes also include changes in the raw materials for certain products. Chinese producers offer such products at the market at prices significant lower than the group’s captive production in Porsgrunn/Norge.
RHI AG has in its board meeting on the 27th of July 2016 therefor decided that the company mainly will use Chinese raw materials in its production. As a result no further orders for fused magnesia will be placed with Normag in Porsgrunn.
The board of RHI Normag AS received notice of the decision on the 28 of July 2016, and the Normag board made the decision to immediately stop production of fused magnesia awaiting further decisions.
Normags production of other products CCM (Caustic calcined magnesia) continues and deliveries to external customers continues as normal.
The Board of Normag have, in cooperation with the representatives of the employees initiated a process to decide how the company shall adapt to the new situation caused by the loss of orders for fused magnesia from RHI. This means, eg. an evaluation of potential new customers and market segments, as well as an evaluation of further cost reduction measures.
Before this process has been concluded it will not be possible to give an estimate of how many positions/employees that will be affected by these changes.
The Board of RHI Normag as
Press contact: Thomas Frømmer CEO RHI Normag AS is a legal entity in the RHI AG group. RHI AG is listed in Wien (Austria). RHI AG is a world leader in refractories, supplying more than 10.000 customers worldwide RHI AG operates 31 production facilities in Europa, Amerika and Asia. Styret i RHI Normag AS."