Dec. 19, 2025 - As 2025 comes to a close, the refractory industry stands at a pivotal moment — shaped by rapid technological advancement, shifting global supply dynamics, and a renewed emphasis on sustainability, workforce evolution, and customer partnership.
Across steelmaking, cement, non-ferrous metals, and beyond, our customers are navigating an increasingly complex operating landscape. Yet this year has also revealed extraordinary opportunities to accelerate innovation, rethink collaboration, and strengthen the role of refractories in a more digital and sustainable industrial world.
In this special year-end edition, we sit down with RHI Magnesita CEO Stefan Borgas as to reflect on the defining themes of 2025, the milestones that shaped our journey, and the strategic direction guiding our path forward. From market challenges to breakthrough advancements.
Below, Stefan shares his insights on the year behind us and what lies ahead for our customers, our teams, and the refractory sector.
Q: Stefan, 2025 has been a turbulent year globally. When you look back, what stands out first?
The words that capture this year best are "surprise" & "resilience". Global conditions remained unstable, changed and surprised us continuously, sometimes even during the month. This was influenced by geopolitical tension, trade frictions and shifting supply chains – many of our key customer industries also felt the effects. Despite the unpredictable global landscape, our customers, partners, and investors trusted us to remain a stable force in their value chains. Their confidence enabled us to push forward with resilience. At the same time, our teams kept their focus on the essentials: delivering quality, maintaining customer trust and pushing ahead with the long-term transformation we committed to. That consistency and clarity made a significant impact.
Q: How did these global dynamics affect RHI Magnesita’s performance?
We navigated the environment – with a lot of difficulties and a very subdued performance until July this year. But then the actions that everyone had initiated started to grip, our performance improved and we have started delivering a much better performance since August. This “turn around” comes solely from strengthening our operational foundation: cost reductions, careful price increases, unfortunately some plant closures, but also more operational stability and consistency. What increasingly sets us apart now is our local-for-local strategy: local plants embedded in a global network – this gives us flexibility when it matters.
Q: Internally, this was also an important year for several strategic programs. What stood out to you?
Despite all volatility, we are executing our clearly defined strategy (and actually checking it permanently to ensure it still makes sense) – these are:
Our major digital transformation to put data in the center: DigiT (the implementation of SAP S/4HANA), transport management system, o9 for supply chain panning, Metals Hub for raw materials planning and many systems inside our plants that create our Operations Excellence System (OES). We will become AI ready soon.
The standardization of our admin processes with the construction of our Global Shared Services together with Capgemini.
The integration of our acquisitions, especially Legacy Resco and BPI in the US, as well as searching for the next wave of acquisitions. Here we harvest efficiency and cost improvements. More importantly, however, we now have new capabilities, customer relationships, and knowledge. This is impressive and inspiring.
The strengthening of our backward integration, which is now designed in detail and in the process of implementation.
Q: What progress did RHI Magnesita make in sustainability this year?
Sustainability has become deeply embedded in how we operate and invest. In 2025, we continued to increase our recycling initiatives, in terms of actual usage and also in terms of technology improvement. Our renewable-energy capacity expanded, and we commissioned a 2.2 MW photovoltaic installation in China, saving around 2,000 tons of CO₂ annually; more such projects are under way in all regions. We have also advanced on our green minerals initiative, which will open a new business area for RHIM while absorbing 50,000t/year of CO₂ of our existing processes at the same time with just the first project. This is a significant transformation since 2019.
Q: How did the combination of AI technology and culture evolve in 2025?
During 2025 we shifted our mindset: colleagues began using AI, leveraging automation and digital tools to genuinely improve daily work and decision-making. Our focus on upskilling and data literacy supports this development and builds confidence. We are still in the exploratory phase of finding the best way to use AI technologies in our many different functions, but by embracing AI across our operations, we will be setting new standards in efficiency and reliability for the refractory industry.
Our culture of open, collaborative and direct, curious spirit helps a lot to enable this exploration. It’s more a bottom-up process right now rather than a corporate top-down approach.
Q: What are you personally most proud of this year?
I am especially proud of the dedication and commitment shown by our people that led to the turn-around of our business in the second half of this year. Our customer focus has improved even further! I also value the discipline we maintained in advancing our priorities in the areas of digitalization, sustainability, customer focus, and operational excellence. And finally, I appreciate the open and pragmatic mindset which shaped decisions throughout the year, as we have established a no-blame culture focused on finding solutions together. The spirit of our employees helped me personally to overcome my own moodiness – and for this I want to thank all of RHIM’s professionals personally: you helped me to get through! Thank you.
Q: What challenges remain as we enter 2026?
The ones we know are much the same as in 2025: they are linked to implementing our strategy projects in an environment of subdued market demand. Geopolitical uncertainty will bring new challenges in 2026: let’s not be surprised to be surprised. This means we need to stay flexible, focused and prepared to act. And I learned from our team that keeping a friendly positive spirit and taking care about each other is the best foundation.
In a market remains challenging; innovation becomes even more important; service and speed for our customer will be the decisive differentiators – RHIM has the largest toolbox in the industry for this. Talent development, especially in technical and digital areas, will remain essential. The simplification of our processes has great potential. The external challenges are an invitation to move further, be faster, and think smarter.
A Smarter Way to Protect People and Improve Furnace Performance
At RHI Magnesita, safety shapes how we innovate and how we support our customers. For operators in the nonferrous industry, the Agellis VISIR FurnaceSafe System offers a reliable way to strengthen both safety and productivity.
VISIR FurnaceSafe uses infrared thermal imaging to monitor the furnace shell continuously. It detects abnormal temperature patterns early and provides clear alerts so teams can act before a hotspot becomes a serious incident. This helps prevent breakouts, extends refractory life, and reduces unplanned downtime.
The system integrates with existing plant controls and gives operators real time insight into furnace conditions. It is a practical and effective tool for creating safer and more efficient non ferrous melting operations.
A First for Canada: Robotic Spray Application Goes Live
We’re proud to announce the successful completion of our Robotic Spray Application Project with Stelco—the first deployment of its kind in Canada. This milestone showcases how automation and precision technologies are transforming the steel industry, delivering improved consistency, reduced waste, and enhanced safety.
The project was a true cross-functional success, driven by close collaboration between Engineering, Automation, Sales, Field Operations, and our customer. A huge thank you to the project team and on-site crews whose dedication made this achievement possible. This success further strengthens our leadership in advanced machinery solutions and sets the stage for future robotic applications across North America.
RHIM 2025 ESG Ratings: Consistent Progress, Recognised Impact
Our 2025 ESG ratings confirm that our long-term focus on governance, transparency, and disciplined execution is delivering results. We maintained our CDP A- score for the third consecutive year, reinforcing our leadership in climate governance and decarbonisation. ISS ESG upgraded RHIM to B- with PRIME Status, recognising meaningful progress in people management, supplier practices, and corporate governance.
Our MSCI ESG rating remains AA, keeping us firmly in the Leader category with global investors. We also improved our EcoVadis score to 79, securing Gold status and placing us in the top 5% of companies worldwide—while generating tangible financial benefits through ESG-linked loans. These ratings strengthen trust with customers, investors, and partners, while providing valuable feedback to keep raising the bar.
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