Refractories are heat-resistant materials used to line furnaces, kilns and reactors in industries such as steel, cement and glass. They are essential consumables for steelmakers and typically need periodic replacement.
The proposed greenfield facility will be located in Odisha, close to major steel manufacturing hubs, and will focus on the collection, processing and recycling of used refractory materials, said the company in an exchange filing.
Locating the plant near major steel clusters is expected to improve access to spent refractory materials while reducing transportation costs and logistics complexity.
The venture is intended to create an integrated recycling supply chain and increase the availability of recycled raw materials for refractory production and other industrial applications.
The move comes as manufacturers increasingly look to reduce dependence on imported raw materials, lower costs and meet sustainability targets by incorporating more recycled content into industrial production.
Under the agreement, RHI Magnesita will hold a 51% stake in the joint venture, while Khemka Refractories will own the remaining 49%.
Parmod Sagar, Chairman, MD & CEO, RHI Magnesita India Ltd., said, “Through this green-field joint venture, we are laying the foundation for a circular economy platform with globally leading processing technology and best-in class infrastructure.”
The company said that the facility will combine RHI Magnesita’s recycling expertise with Khemka Refractories’ regional supplier network and raw-material capabilities.
The project also aligns with a broader global push towards circular manufacturing, where industrial waste is recovered and reused instead of being discarded, helping reduce landfill waste and carbon emissions.
It added that the project is expected to support efforts to reduce dependence on virgin raw materials, improve resource efficiency and lower carbon emissions across industrial value chains.
For India’s steel industry, which is expanding capacity rapidly, greater availability of recycled refractory materials could help improve supply security and reduce input costs over time.
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The company said that transaction remains subject to customary closing conditions and is expected to be completed in the third quarter of 2026.
RHI Magnesita India shares ended 1.22% lower at ₹375 on the NSE on June 25.
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