RHI Magnesita: A good model of China-Austria economic journey

Headquartered in Vienna, Austria, RHI Magnesita, the world's leading supplier of high-grade refractory products, systems and solutions critical for high-temperature manufacturing processes, started its business in China as a joint venture in 1995. That year, annual trade volume between China and the Central European country was only $580 million.

Marco Olszewsky, president of RHI Magnesita China and East Asia, has resided in China since 2007. With a passion for Chinese culture and expectations for the Chinese market, he came here to sow his own dreams. Striving to enhance the entrepreneurial spirit of the local team, he implemented a business philosophy of providing local solutions for Chinese customers. "If you treat your colleagues with heart, they will also treat your company and customers with heart", he said.

RHI Magnesita has consistently expanded its investment in China, even during the global pandemic and amid US-China tensions in 2021. That year the company acquired a 51 percent ownership stake in Chongqing Liangyou Refractory Technology Company, strengthening its market position in southwest China and even globally, and Olszewsky received the Shanghai municipal government's prestigious Magnolia Award for his contributions to the city's development and economic prosperity.

On May 4 of this year, RHI Magnesita announced its acquisition of 65 percent of shares of Jinan New Emei Industries, a leading producer of refractories in China. The acquisition enables the Austrian company to expand its product range in steel flow control refractories and better serve its regional customers in China and East Asia.

"We are confident that Jinan New Emei, as a market leader and trusted long-term business partner, will complement our China steel product portfolio and strengthen our full line service offerings," said Olszewsky. "This acquisition is a key milestone for us to deliver our strategy. We are ready to grow our business to capture more market share in the world's largest steel market."

Olszewsky's enthusiasm was echoed by Stefan Borgas, CEO of RHI Magnesita, who noted China is the largest steel market in the world, accounting for over 50 percent of global production. Responding to a question about whether geopolitical tensions would affect European companies' investment in China, Borgas said he could not answer the question on behalf of all European companies, but emphasized that China's economic achievements over the past 40 years have benefited the entire planet, and China and Europe should focus more on how they can join hands to tackle global climate challenges.

By the end of 2022, bilateral trade volume between China and Austria reached 22.4 billion euros ($23.6 billion), and China was entrenched as the world's second-largest economy for over a decade. Nearly 30 years since its entry into China, RHI Magnesita has become a key player in the domestic refractory industry, with RHI Magnesita China and East Asia now operating 10 plants and one mine here.

"We are committed to investing in China over the long run and looking at it as a region of priority for our global investment," said Olszewsky. "Science and technology are the primary productive forces. RHI Magnesita is fully aware that technological innovation is crucial to navigating dynamic industry trends and is necessary to meet the growing demand for high-quality, eco-friendly products in the Chinese market.

"With an ambition of reducing carbon dioxide emissions by 15 percent and energy consumption by 5 percent per ton of production by 2025, we will continue to develop innovation, advocate green and low carbonization, promote recycling solutions and adhere to the journey of sustainability, contributing to the high-quality development of refractory industry."