12 May, 2010 - Two of the world's leading refractory producers, Magnesita Refrat rios SA of Brazil and Krosaki Harima Corp. of Japan, are to join forces to supply the North American market through a new joint venture based in the US state of Indiana.
The joint venture, split 40-60% between Magnesita and Krosaki respectively, will be headquartered at Crown Point, Indiana, where technical and engineering services will be managed.
The refractory plant will be located at York, Pennsylvania, the site of LWB Refractories' US operations (refractories and dolomite production), which were acquired by Magnesita in 2008.
This aims at supplying steel flow control refractories used in continuous casting to steel producers in the USA, Canada, and Mexico. And the companies can share technology, products, and manufacturing facilities in North America.
Hiroaki Miyahara, the CEO of Krosaki Harima Inc. will also act as CEO of the joint venture.
This move represents an increasing interest in Magnesita by the Japanese group. In 2007, Magnesita SA was acquired by Brazilian private equity firms GPI and G vea, but during the year Krosaki also acquired a 2.71% share of the Brazilian magnesia and refractories group.
The joint venture forms part of Krosaki's Ninth Medium-Term Management Plan (March 2009-2012) announced earlier this year which calls for the company to "further promote the global marketing of functional refractories especially in China, India, North America and Europe, while achieving closer cooperation with alliance manufacturers".
There is also an expected reorganization of top Krosaki management, which is expected to be confirmed at the shareholders meeting on 29 June 2010.
The joint venture, split 40-60% between Magnesita and Krosaki respectively, will be headquartered at Crown Point, Indiana, where technical and engineering services will be managed.
The refractory plant will be located at York, Pennsylvania, the site of LWB Refractories' US operations (refractories and dolomite production), which were acquired by Magnesita in 2008.
This aims at supplying steel flow control refractories used in continuous casting to steel producers in the USA, Canada, and Mexico. And the companies can share technology, products, and manufacturing facilities in North America.
Hiroaki Miyahara, the CEO of Krosaki Harima Inc. will also act as CEO of the joint venture.
This move represents an increasing interest in Magnesita by the Japanese group. In 2007, Magnesita SA was acquired by Brazilian private equity firms GPI and G vea, but during the year Krosaki also acquired a 2.71% share of the Brazilian magnesia and refractories group.
The joint venture forms part of Krosaki's Ninth Medium-Term Management Plan (March 2009-2012) announced earlier this year which calls for the company to "further promote the global marketing of functional refractories especially in China, India, North America and Europe, while achieving closer cooperation with alliance manufacturers".
There is also an expected reorganization of top Krosaki management, which is expected to be confirmed at the shareholders meeting on 29 June 2010.
