# Digital Proof of Material Origin

> 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.

**Sector:** Secondary sector · **Industry:** Glass and ceramics industry · **Organisation:** RHI Magnesita · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/rhi-magnesita-materialherkunft-digital-nachweisen

## 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.

## Benefits

- 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
- 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
- Reduction of manual documentation efforts through automated data processes
- Clearer data basis for decisions in purchasing and quality assurance

## Challenges

- Onboarding suppliers and customers onto the shared platform requires considerable coordination effort
- Data protection and confidentiality requirements must be carefully considered in platform design
- 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
- 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.

## Sources

- [RHI Magnesita – Blockchain-Initiative mit Gerdau zur Lieferkettentransparenz](https://www.rhimagnesita.com)
- [RHI Magnesita – Unternehmensprofil, Branchen und Produkte](https://www.rhimagnesita.com)