CUMI International Limited, Cyprus, has entered into an agreement with RHI AG, Austria, to buy 100 percent equity of RHI’s South African subsidiary, RHI Isithebe (Pty) Limited.  The company will also be buying the 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 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,” statement released by the company stated.

The purchase of the company by CUMI will also add to the capital technology capacity, market access, application engineering expertise and global management practices of Isithebe business.

According to the CUMI Managing Director, K Srinivasan, the share purchase and investment into RHI South Africa would be around $5 million.

CUMI, a wholly subsidiary of Carborundum Universal Limited (CUMI) India, is part of the $4.4-billion Murugappa Group.

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 United States. It 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.

“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.

According to a report by Business Standard, the change in ownership is expected to benefit TRI’s customers, employees and the local community. The deal will be formally concluded as soon as the necessary clearances are obtained and all conditional precedent is met.