RHI Magnesita Completes 36-System SAP Migration in 13 Months

Industrial heat-shield maker RHI Magnesita is expanding its SAP footprint as part of a global modernization program spanning core ERP, HR and AI-enabled workflows, SAP said.

The Vienna-based refractory materials manufacturer, which operates in more than 30 countries, completed a migration of 36 SAP systems across 12 technology landscapes in 13 months without interrupting operations, according to the company.

RHI Magnesita makes refractories, specialized heat-resistant materials used to line furnaces and kilns in steel, glass, cement and other industrial sectors. Because those materials support high-temperature manufacturing processes, the company’s ability to modernize core systems without disrupting operations is central to the program’s significance.

Vienna-based RHI Magnesita is the world’s largest producer of ‘refractories’ – specialized heat-resistant materials that line the massive furnaces and kilns used to make everything from the steel in our cars to the glass in our windows.

These materials must withstand temperatures exceeding 2,200 degrees Fahrenheit, or 1,200 degrees Celsius, making them a critical input for industrial production.

The company’s operations make it critical infrastructure for the world’s largest builders and manufacturers; any disruption would seriously affect production of materials for infrastructure, housing, and technology.

Why RHI Magnesita is Modernizing its SAP Landscape

The company’s transformation is driven by the scale and complexity of its global operations. With over 20,000 employees across the globe, RHI Magnesita faced the classic challenges of global industrial operations: fragmented systems, varying regulatory requirements, cultural and linguistic differences, and the need to balance global process standards with local operational flexibility.

These conditions created complexity in data integration, governance and visibility into both talent and operational performance. Prior to the modernization, the company ran multiple SAP landscapes that had grown organically over time. The parallel programs – one centered on human capital management and the other on core systems modernization, were designed to address that fragmentation while preparing the organization for data-driven decision making at scale.

Project DigiT centers on adoption of SAP S/4HANA Cloud Private Edition. As the foundational step, RHI Magnesita migrated its SAP ECC environment to cloud infrastructure to SAP S/4HANA Cloud Private Edition (formerly RISE with SAP).

The 36-system migration across 12 landscapes, completed in 13 months with zero operational disruption, created a more scalable platform for regional S/4HANA pilots and rollouts through 2027, the company said.

How SAP SuccessFactors Runs Alongside the S/4HANA Program

The HR program began five years earlier. RHI Magnesita went live with SAP SuccessFactors in December 2020 and has since rolled out the full suite globally, covering recruiting, performance management, learning, succession planning, talent development, and competency management.

SuccessFactors now serves as the single global system of record for people data. It has standardized processes, improved visibility into talent and performance, and delivered a positive user experience — with roughly 80% of employees rating the platform favorably, according to the company.

The company is also expanding AI use primarily within SuccessFactors. Use cases include AI-assisted job description generation, goal setting, learning recommendations, talent analytics, and automatic translation and text improvement. One case presented at SAP NOW highlighted how AI-driven translation helped globally distributed teams interact more easily with the platform while keeping English as the corporate standard.

Rafael Augusto Pinto Figueira, head of HR digitalization and data at RHI Magnesita, said the effort went beyond efficiency. “Our digital transformation was never aimed only at operational efficiency, but mainly at improving people’s experience and strengthening data governance,” he said. New AI features are introduced gradually, with heavy involvement from compliance and legal teams to ensure alignment with European regulations and data privacy standards.

What This Means for SAPinsiders

Cloud migration is the foundation, not the finish line. RHI Magnesita’s move from SAP ECC to cloud infrastructure through RISE with SAP shows how industrial companies may need to rationalize complex SAP landscapes before S/4HANA Cloud rollouts can scale. The 36-system migration across 12 landscapes is the key milestone practitioners should note.

ERP and HR modernization can run on parallel tracks. The company’s S/4HANA program is part of Project DigiT, while SuccessFactors has already become the global HR system of record. For transformation leaders, the case shows how core ERP modernization and HR standardization can proceed at different speeds while still supporting a broader data governance agenda.

AI adoption depends on governance and data readiness. RHI Magnesita is applying AI first in defined HR use cases such as job descriptions, translations, goals and learning recommendations. The company’s gradual rollout, with legal and compliance involvement, reflects a practical model for SAP customers that need to balance AI adoption with privacy, regulation and data quality requirements.