Digital Proof of Material Origin
Sector: Secondary sector · Industry: Glass and ceramics industry · Organisation: RHI Magnesita · Maturity level: Pilot
RHI Magnesita uses blockchain technology to traceably document the origin and journey of raw materials along the supply chain. The approach is based on distributed ledger technology that stores data in a tamper-proof manner, creating transparency for customers and internal audit processes. As a global leader in refractory solutions, the company is setting a benchmark for greater traceability in material-intensive industries.
Documentation status
- Project status: Pilot
- Evidence: Evidence medium
- Editorial review: Ufuk Avci, 12 July 2026
Description
Blockchain technology enables companies like RHI Magnesita to digitally and tamper-proof document the entire journey of a raw material – from extraction through processing to the finished product. Every step in the supply chain is stored as an immutable data record on a shared platform accessible to all authorised partners. This creates unprecedented transparency, simplifying internal audit processes and providing customers and regulators with reliable proof of origin. The approach is particularly relevant for industries where raw material quality, ethical extraction and regulatory requirements play a central role.
RHI Magnesita, a global market leader in refractory solutions, controls the entire value chain from raw material extraction to the finished product and supplies, among others, the steel, glass and ceramics industries. To increase transparency in this complex supply chain, the company has introduced a blockchain platform that digitally secures the traceability of products and raw materials. Specifically, a cooperation with the Brazilian steel group Gerdau is documented, where a blockchain platform was put into operation at a site in Minas Gerais, Brazil, to trace refractory materials in the supply chain. RHI Magnesita and Gerdau describe themselves as pioneers in the use of blockchain in the steel industry, highlighting traceability, transparency and data security as key benefits. The platform was initially used exclusively at this one site, with the stated intention to expand its use from there. Specific technical details of the blockchain system used as well as measurable figures on efficiency or cost improvements are not publicly documented. Nevertheless, the use case exemplifies how manufacturers in material-intensive industries can use blockchain to digitally underpin supply chain commitments.
Perspectives
B2B — organisations perspective
For business customers in the steel, glass and ceramics industries, the blockchain-based traceability from RHI Magnesita offers the direct advantage that proof of origin and quality for purchased refractory materials is always verifiable and tamper-proof. This significantly facilitates audits, compliance evidence and supplier qualification, and strengthens trust in long-term supply relationships.
Employees perspective
Employees in purchasing, quality assurance and compliance benefit from automated, platform-supported documentation processes that reduce manual efforts in origin verification. At the same time, the new technology requires building digital skills and a willingness to adapt established workflows to data-driven processes.
Benefits
General
- Tamper-proof, complete documentation of raw material origin along the entire supply chain
- Increased transparency and traceability for all involved partners
- Simplification of audits and compliance evidence through digitally available data
- Strengthening trust among business customers and regulators
B2B — organisations
- Reliable proof of origin as a competitive advantage for customers with high compliance requirements
- Reduction of risks through transparent and verifiable supply chain data
- Foundation for trust-based, long-term business relationships with partners
Employees
- Reduction of manual documentation efforts through automated data processes
- Clearer data basis for decisions in purchasing and quality assurance
Challenges
General
- Integration of the blockchain platform into existing ERP and production systems of all involved partners is technically complex
- Acceptance and active data maintenance by all supply chain partners is a prerequisite for the solution's added value
- Lack of public metrics makes it difficult to assess the actual benefit for potential imitators
B2B — organisations
- Onboarding suppliers and customers onto the shared platform requires considerable coordination effort
- Data protection and confidentiality requirements must be carefully considered in platform design
Employees
- Building new digital skills in handling blockchain platforms is necessary
- Changing established workflows can encounter internal resistance
Technology foundation
The use case is based on a blockchain platform that operates on the principle of a distributed ledger technology (DLT). Data on raw material origin and supply chain steps are stored immutably and traceably for all authorised participants. A permissioned blockchain is particularly suitable for this use case as it allows controlled access for defined business partners while ensuring the integrity of the stored supply chain data. The specific technological stack of RHI Magnesita is not publicly documented.
Implementation examples
Blockchain pilot project for traceability of refractory materials with Gerdau
In complex industrial supply chains, there is often a lack of reliable, tamper-proof evidence regarding the origin and path of raw materials and components. RHI Magnesita and Gerdau aimed to solve this problem by using blockchain technology to simplify internal verification processes and provide robust proof of origin to customers and regulators.
RHI Magnesita and the Brazilian steel company Gerdau have jointly introduced a blockchain platform to digitally trace refractory materials in the supply chain. The platform was launched at a Gerdau site in Minas Gerais, Brazil, and is intended as a starting point for extended use.
RHI Magnesita, the global market leader for refractory solutions, and Gerdau, one of Brazil's largest steel companies, jointly describe themselves as pioneers in the use of blockchain in the steel industry. As part of the project, a blockchain platform was developed and exclusively implemented at a Gerdau site in Minas Gerais, Brazil, to ensure traceability of products and raw materials in the shared supply chain. The platform stores data on the origin and path of refractory materials in a tamper-proof manner and is traceable for all authorised partners. The central goals emphasise traceability, transparency, and data security along the supply chain. According to company statements, the pilot operation at one site was designed as a starting point for planned expansion, but concrete follow-up steps are not publicly documented.
The project addresses the lack of transparency and traceability in industrial supply chains, where data on raw material origin and processing steps were previously distributed, difficult to verify, and potentially manipulable. The shared blockchain platform aims to overcome data silos between supplier and customer and create a unified, trustworthy data basis.
Tags
Supply chain, Traceability, Raw materials, Distributed Ledger, Refractory materials, Transparency, Compliance