RHI Refractories extends refractories capacity in China further

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Wien (euro adhoc) - RHI Refractories currently produces high-grade
refractories solutions for the markets China, Asia/Pacific, Near and
Middle East, Russia and North America at four locations in China. The
plant in Bayuquan, commissioned in 1996, has been extended in several
steps to its current annual capacity of 100,000 tonnes. In 2004,
RHI’s first plant in Dalian was established with a capacity of 40,000
tonnes. This plant’s capacity has since been increased to 100,000
tonnes. In 2005, RHI established a production facility for fused cast
refractory products for the glass industry in Zibo City in
cooperation with a joint venture partner. In August 2006, RHI opened
its second plant in Dalian for the production of isostatically
pressed flow control products for the steel industry.

Due to the expected increase in sales volume in the future,
especially in the industrial segment with the customer industries
cement, lime, nonferrous metals and glass, and to safeguard the
organic growth targets for 2010, RHI will extend the first Dalian
plant once again by adding a production line for 35,000 tonnes of
fired magnesia bricks. Total capital expenditure is budgeted at EUR
12 million; the extension measures are scheduled to be completed by
the end of 2007.

RHI Refractories will thus be able to competitively cover the
increasing demand for high-quality refractory products especially
among customers in the Asia/Pacific region. The raw materials
required for the production are supplied locally in China from the
raw materials joint venture in the Liaoning province, in which RHI
acquired an 80% share in March 2006.

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 10:56:16
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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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