Brazilian refractories producer Magnesita has announced this week a new business structure, which is expected to boost the company’s operations in the global market.
According to a company’s filing published at the nation’s securities exchange commission, CVM, Magnesita will reorganize both its mining and raw materials businesses in Brazil, as well as its operations of production and distribution of refractories outside the country, with the exception of South America.
Magnesita said its global operations will be owned by an English subsidiary called Mag International, a public limited company or PLC.
Magnesita informed it will list Mag International at the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) in the UK, as part of the company’s move.
Defending the new proposed business structure, which is yet to be approved by the company’s shareholders, Magnesita said it expects to reinforce the company’s corporate image as a global player, since it already operates in diverse refractories markets across the globe, and because 75 percent of its operating revenues are outside Brazil.
It also expects to strengthen its capital structure, allowing it to have access to better financial resources in the global market, while reducing capital costs.
Magnesita recently estimated the refractories market within the steel segment in South and Central America to be worth USD 130 million. In the US, it estimated the segment within the same sector to reach USD 700 million, while in Mexico it’s worth USD 270 million.