Puyang Refractories Group, a maker of ventilation-bricks, plans to acquire a 95% interest in Huayin New Material and some of the assets of Xiangcheng Magnesium for a total of 142M yuan in order to stabilize the sources of its raw materials, reports yciai.com, citing a company filing. The two targets were originally controlled by Huayin Investment. After the completion of the acquisition, Huayin New Material, which mainly produces magnesium aluminate spinel, will be positioned as a producer and process or of high-end magnesium refractory raw materials. In addition, Puyang Refractories plans to establish a joint-venture with Huayin Investment, in which they will inject the light-burnt magnesium assets of Xiangcheng Magnesium. The two parties signed a long-term procurement plan by which magnesite will be purchased at market prices.
