RHI Magnesita India Ltd. has partnered with Khemka Refractories Pvt. Ltd. for a new refractory recycling facility in Odisha. This venture aims to boost circular economy efforts and secure raw materials.
RHI Magnesita India Forms Joint Venture for Refractory Recycling
RHI Magnesita India Ltd. has announced a strategic joint venture with Khemka Refractories Pvt. Ltd. to establish a greenfield refractory recycling facility in Odisha.
Reader Takeaway: Sustainability-focused recycling venture to enhance raw material security and align with ESG goals.
What just happened
RHI Magnesita India and Khemka Refractories Pvt. Ltd. are forming a joint venture (JV) where RHI Magnesita will hold a 51% stake and Khemka Refractories will hold 49%. This JV will develop a new refractory recycling facility in Odisha.
Why this matters
The venture aligns with RHI Magnesita's circular economy objectives and '4PRO Solutions' proposition. It aims to create a closed-loop supply chain by recovering, processing, and reusing spent refractory materials, thereby reducing reliance on virgin raw materials and supporting carbon reduction. The facility's location in Odisha is strategic, being close to major steel production hubs.
The backstory
RHI Magnesita India is a major player providing refractory solutions for high-temperature industrial processes. Khemka Refractories brings established regional supply networks and operational expertise in Odisha, where it operates multiple manufacturing plants and an R&D center.
What changes now
The JV will focus on building a scalable, technologically advanced recycling platform. The transaction is expected to conclude in the third quarter of 2026, subject to standard closing conditions. This move signifies a strategic integration of recycling into the company's supply chain operations.
Risks to watch
The primary risk is the project's timeline, with the facility not expected to be operational until late 2026. Delays in regulatory approvals or construction could impact the projected benefits.
Peer comparison
While specific peer recycling ventures are not detailed in the filing, the trend towards ESG compliance and circular economy models is growing across the industrial materials sector. Companies are increasingly looking at sustainable sourcing and waste reduction.
Context metrics
- JV Stake: RHI Magnesita India - 51%, Khemka Refractories - 49%
- Facility Type: Greenfield refractory recycling
- Location: Odisha, India
- Expected Close: Q3 2026
What to track next
Investors should monitor regulatory approvals and construction progress towards the Q3 2026 target. The company's future announcements regarding the JV's operational capacity and its impact on raw material costs will be key.