CUMI to acquire fused refractories maker in South Africa

CUMI International Limited, Cyprus, a wholly-owned subsidiary of Carborundum Universal Limited (CUMI) India, has entered into a binding agreement with RHI AG, Austria, for the purchase of 100 per cent of the equity of RHI’s South African subsidiary, RHI Isithebe (Pty) Limited. CUMI is a part of the $4.4-billion Murugappa Group.

The acquisition also includes RHI Refractories Africa (Pty) Limited’s refractory manufacturing facilities in South Africa. Isithebe is one of the largest fused mineral manufacturing facilities in Africa and can deliver up to 30,000 tonne of various fused minerals a year.

The share purchase and investment into the company would be around $5 million, according to the company’s managing director K Srinivasan.

CUMI is one of the few companies globally that is not only involved in fused minerals and refractories, but also has existing operations in South Africa, according to the company’s statement.

“The acquisition of the Isithebe operations by CUMI will ensure continuity of business, jobs for employees and quality products for customers. CUMI would also introduce its own technologists to enhance the electro-mineral operations and to extend the ready-to-use product range,” the company added in the statement.

CUMI is an integrated abrasives, electro-minerals, ceramics and refractory company with operations in Australia, Canada, China, India, West Asia, Russia, South Africa, Thailand and the US.

CUMI brings to the Isithebe business, along with capital and technologists, its brands, market access, application engineering expertise and global management practices.

“This will enable the Isithebe plant – to be renamed as Thugela Refractories, Isithebe (TRI) – to grow its electro-mineral and refractory business,” the company said.