An exclusive interview with CEO of RHI AG

2014-11-15

As the impact of economic crisis gradually fades, global refractories industry ushers in a new stage of development, but it still faces some challenges besides potential opportunities. Refractories Window is pleased to interview Mr. Franz Struzl, CEO of RHI AG, to share his points of view with us on the development of global refractories industry.

RefWin: What is the global development strategy of RHI? Franz Struzl: The RHI Group currently operates 33 production sites, of which 21 are located in Europe and 12 outside of Europe. RHI also has three production sites in China and a raw material site with a participating interest in a magnesite mine. Another seven raw material sites, where primarily magnesite is mined, are located in Europe. The self-sufficiency level with magnesite amounts to roughly 80% and makes RHI practically independent of the volatile raw material markets. This backward integration remains an important cornerstone in RHI’s strategy. RHI currently generates some 57% of its total revenues of roughly 1.8 billion euros in markets outside of Europe. Our strategic orientation aims at gradually increasing this share to 70% in the coming years. Although RHI has strong roots in its home country Austria, we will advance the company’s globalization in the years to come. We closely monitor the market and continuously search for raw material sources and production options. RefWin: How do you comment on the market supply and demand in Europe? Franz Struzl: Unfortunately, the European market is still falling short of expectations. We have surplus capacities in several customer industries, for example in steel or glass. This has a negative impact on demand in the refractory industry. In Europe, we are currently confronted with a generally subdued investment climate and a rather pessimistic atmosphere, which is increasingly paralyzing business life. As a result, the economy in Europe is faltering and even the economic engine Germany is threatening to lose momentum. Therefore, concerns about a “triple dip”, i.e. fears that the economy may slide into recession for the third time after 2008 and 2012, are growing. In contrast, when I travel through China, I see a much more optimistic general attitude in business, even if the growth momentum has also slowed down here. Moreover, the attitude towards industry is much friendlier in China than in Europe. So it is no great surprise that many European companies currently want to position themselves more strongly in the growth markets outside Europe.

RefWin: Which countries do you see as the markets with growth potential?

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RefWin: What are the challenges faced by global refractories industry in the next years?

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RefWin: What exactly do you mean by innovation management?

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