RHI acquires 51% stake in Clasil Refractories, India

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ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
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Wien (euro adhoc) - Clasil Refractories Ltd. is currently
commissioning a refractories plant in Venkatapuram in the province
Andhra Pradesh. An extension of the plant to include the production
of bricks and mixes, the production of prefab parts and a
manufacturing line for slide gate plates is scheduled for mid-2007.
The Venkatapuram site has an excellent logistic location approx. 50
km south west of Vishakhapatnam, the largest east Indian harbor, and
is optimally positioned strategically with a view to the growing
steel and cement industries in east India and possible exports to the
Middle East and Asia.

RHI Refractories has become the largest importer of refractories in
India, but so far has not operated any local production capacities.
The sustained significant economic growth in India and the continuous
development of the infrastructure will lead to a substantial
extension of production capacity, especially of steel and cement,
with the demand for high-grade refractory solutions growing
correspondingly. To ensure optimal service for customers in India, it
is indispensable for RHI Refractories to further increase its
presence in this important emerging market and offer complete package
solutions from local production.

In the course of a capital increase, RHI Refractories will initially
take over 51% of the shares in Clasil Refractories Ltd.. Having
acquired a stake in Clasil Refractories, RHI Refractories now has a
first production center at its disposal. In the future, the local
sales and service experts of Clasil and RHI will work this important
emerging market even more intensively with optimal customer
solutions. Clasil management and RHI are looking forward to mutually
develop RHI-Clasil as a prime refractory player in India.

The RHI Group will in the future focus exclusively on extending its
position as the world market leader in refractories under the RHI
Refractories brand. Worldwide, there are good opportunities to
sustainably expand the excellent market position and earnings power
of RHI Refractories in the coming years. The objective is to
increase the revenue of currently approx. EUR 1.3 billion to EUR 2.0
billion by the year 2010 through organic growth and acquisitions.

end of announcement euro adhoc 20.12.2006 10:52:34
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ots Originaltext: RHI AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
RHI AG
Investor Relations
Dkfm. Markus Richter
Tel: +43-1-50213-6123
Email: markus.richter@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing


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