News

03.10.06

Magnezit Group Ltd. strengthens its positions on the European market

Leader of refractory industry on Russian and CIS market — Magnezit Group Ltd. strengthens its positions on foreign markets and expands its sales channels in Europe. The main site of the Group on the European market bringing together production facilities, warehouses and a wide sales network is the enterprise Dalmond Feuerfest Siegburg GmbH & Co. KG which became part of the Holding in August 2005. During a year work in the structure of the Holding the plant produced and sold to the biggest European consumers more than 10 thousand tons of refractories. In 2007 the Group intends to double the total production volumes of the plant — up to 20 thousand tons of refractory masses and 2 thousand tons of shaped refractories.

The German company Dalmond Feuerfest Siegburg GmbH & Co.,KG is one of the leading manufacturers and suppliers of refractory products. It has longstanding history and a wide customer base in Europe. The plant produces unshaped refractories and bricks made of refractory concretes. Integration of Feuerfest Siegburg into the structure of Magnezit Group opened to the Russian Holding access to the European market and to the biggest European plants of ferrous metallurgy (ThyssenKrupp, Arcelor, Hüttenwerke Krupp Mannesmann (НКМ), power industry (RWE) and non-ferrous industry. Thanks to developed sales network of Feuerfest Siegburg the Group got an opportunity to considerably increase on the European market sales volumes of products from other plants belonging to the Group in particular Kombinat Magnezit JSC from Satka.

Besides as a result of Feuerfest Siegburg integration Magnezit Group Ltd. got an opportunity to use and replicate unique advanced technologies of the German company at other plants of the Holding. The Technical Director of the Group Lev Axelrod is of the opinion that German specialists possess unique experience of production and application of gunning masses for different types of thermal units. Composition of binders and refractory mineral fillers is know-how which has been created during longtime testing of refractories at the various plants. Specialists of the Research Laboratory are constantly working over perfection of existing products and development of new ones among which there are masses on the basis of MgO for outer lining of branch pipe of vacuum steel degassers and also gunning masses for repairs of branch pipe of vacuum steel degassers, cement free concretes on the basis of corundum for making of working lining of the bottom of steel teeming ladles etc. Transfer of Feuerfest Sigburg achievements to the Russian plants of Magnezit Group ensures to the Holding a considerable technological advantage.

One of strategic targets of Feuerfest Siegburg development in 2007 is entering markets of French speaking countries (France, Belgium, Luxemburg) and also of Italy, Poland, Czechia. «These regions are the most promising from the point of view of refractory products consumption. The leading world metallurgical companies such as Arcelor, Mittal Steel are located herel. The total volume of the market of gunning masses for tundishes in in France, Belgium, Luxemburg amounts approximately to 25 thousand tons per year, — pointed out Director of European branch of Magnezit Group Dmitri Borzov.

According to General Director of Magnezit Group Sergei Odegov, «strengthening of positions on European market and integration into the world market of refractory products are strategic tasks of Magnezit Group development. This is our long-term and forward-looking reply to the technological and market challenges. It will help us enter the number of the world leaders in production of refractories. According to estimates of the Group investment committee investments into purchase of Feuerfest Siegburg will pay back in 2 years and in 3 years we shall get the first profits.»

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