SMA Mineral in major deal
SMA Mineral in major deal – Focusing the business in Porsgrunn, Norway, on magnesia hydroxide for the pulp and paper industry by strategic deal
SMA Mineral Group closed on September 30 the sale of SMA Mineral Magnesia AS, Porsgrunn, Norway, to refractories supplier RHI Group. Takeover day will be September 30, 2011. The facility for processing chemicals to mainly the pulp and paper industry is not part of the deal. The facility will be based upon magnesia hydroxide (Mg[OH]2) as a raw material from the industrial complex acquired by RHI. The name SMA Mineral Magnesia will be kept by SMA Mineral, the company acquired by RHI will be named RHI Normag AS. The total scope of the deal for SMA Mineral Group is ca. SEK 160 million (ca. EUR 17 million).
“The sale and connected long term supply agreement with RHI regarding purchases of magnesia hydroxide will increase our competiveness on magnesia hydroxide products to the pulp and paper industry. We believe this segment will continue to grow strongly” says Daniel Juvél, C.E.O. of SMA Mineral Group.
RHI will subsequently invest up to EUR 70 million in a melting plant at the site of SMA. Starting in the summer of 2012, RHI will produce up to 80,000 tonnes of high-graded fused magnesia in Norway. Ca. 200 jobs will be created in Porsgrunn.
For further information please contact:
President & C.E.O, SMA Mineral
Phone: +46 590 164 00