RHI Magnesita, a global leader in refractory solutions, has announced a strategic joint venture with Khemka Refractories Pvt. Ltd. to establish a greenfield refractory recycling facility in Odisha. The partnership is designed to accelerate circular economy practices in India’s refractory sector by recovering, processing, and reusing spent refractory materials while reducing industrial waste and carbon emissions.
The new facility will support India’s growing demand for sustainable manufacturing solutions and strengthen the domestic supply of recycled refractory raw materials. The companies expect the joint venture to play a significant role in improving resource efficiency and enhancing long-term supply chain resilience for industries that rely heavily on refractory products, including steel, cement, glass, and non-ferrous metals.
New Recycling Facility to Promote Circular Economy
The Odisha-based recycling plant will focus on collecting and processing used refractory materials, enabling them to be reintroduced into industrial production instead of being disposed of as waste.
By extending the lifecycle of critical raw materials, the project aims to reduce dependence on virgin resources while supporting India’s transition toward a more circular industrial economy.
Refractory recycling is increasingly becoming an important strategy for reducing greenhouse gas emissions, lowering production costs, and conserving natural resources across heavy industries.
RHI Magnesita Expands Sustainable Manufacturing Investment in India
Commenting on the partnership, Parmod Sagar, Chairman, Managing Director and CEO of RHI Magnesita India Ltd., said:
“India is one of the world’s fastest-growing industrial markets, and as the market leader in refractories, RHI Magnesita is committed to deepening its technological investment in the country. We believe the time is right to build an ethically compliant circular economy platform that brings trust, quality, innovation, consistency and scale to raw materials management for refractories and other industrial markets.”
He added:
“Through this greenfield joint venture, we are laying the foundation for a circular economy platform with globally leading processing technology and best-in-class infrastructure. We will advance circularity, avoid waste and create long-term supply security and superior value for our customers in line with our 4PRO Solutions proposition. A closed material cycle is essential for sustainable business and the responsible use of valuable resources benefiting all stakeholders.”
Partnership to Strengthen India’s Recycling Ecosystem
Khemka Refractories will contribute its regional expertise, operational capabilities, and established supply network to support the development of the recycling platform.
Alok Khemka, Director, Khemka Refractories Pvt. Ltd., said:
“We are delighted to partner with RHI Magnesita in this pioneering initiative for the Indian refractory market. With our operational capabilities, strategic location in Odisha and well-established supply and partner network, we are well-positioned to support the development of a robust recycling platform.”
He further added:
“Together, we aim to focus on scaling operations, process depth and quality consistency in the Indian recycling market while ensuring secure access to critical secondary raw materials.”
Supporting India’s Green Manufacturing Transition
The proposed recycling facility will combine RHI Magnesita’s global expertise in refractory recycling with Khemka Refractories’ strong regional presence in eastern India.
The project is expected to:
- Improve resource efficiency through refractory recycling
- Reduce industrial waste and landfill disposal
- Lower carbon emissions associated with refractory production
- Enhance domestic availability of secondary raw materials
- Strengthen supply chain resilience for India’s manufacturing sector
- Support India’s broader sustainability and circular economy goals
The initiative aligns with the growing adoption of circular manufacturing practices as industries seek to reduce environmental impact while improving operational efficiency.
Ownership Structure and Timeline
Under the agreement, RHI Magnesita will hold a 51% stake, while Khemka Refractories will own the remaining 49% in the joint venture.
The transaction remains subject to customary regulatory approvals and closing conditions, with completion expected during the third quarter of 2026.
India’s Circular Economy Momentum Continues
The announcement reflects increasing investment in recycling infrastructure as manufacturers adopt more sustainable production models. Refractory recycling not only reduces dependence on mined raw materials but also contributes to lower emissions across industrial value chains.
As India’s steel, cement, mining, and manufacturing sectors continue to expand, projects such as the Odisha recycling facility are expected to play an important role in advancing resource efficiency, supporting industrial decarbonisation, and strengthening the country’s circular economy ambitions.
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