SDK to Up Rare Earth Magnetic Alloy Production Capacity in China


Showa Denko K.K. (SDK) will increase rare earth magnetic alloy production capacity at Ganzhou Zhaori Rare Earth New Materials Co., Ltd., in Ganzhou, Jiangxi Province, China, from 2,000 tons per year at present to 3,000 tons per year by the end of this month.

Together with another subsidiary in Baotou, Inner Mongolia, our rare earth magnetic alloy production capacity in China will reach 4,000 tons per year after the expansion. The two subsidiaries in China are producing neodymium (Nd)-based alloys for high-performance magnets, which are used in motors for hybrid cars, electric power steering devices, and voice coil motors of hard disk drives.

With regard to Nd-based high-performance magnets for automotive applications, it is necessary to add dysprosium (Dy) to ensure high magnetic force at high temperatures. While Dy is produced from ion-adsorption ores found only in southern Chinese provinces centering on Jiangxi, the two Chinese partners in Ganzhou Zhaori Rare Earth New Materials are leading rare-earth mineral producers, having ion-adsorption ore mines and operating separation/purification and smelting facilities.

This partnership will continue to enable SDK to supply high-quality alloys in a stable manner in response to growing demand for Nd-based high-performance magnets. Furthermore, to conserve and efficiently use rare earth resources, SDK will work to reduce Dy content in rare earth magnetic alloys.

Under the new medium-term consolidated business plan PEGASUS, SDK positions its businesses in rare earth magnetic alloys, hard disk media, and graphite electrodes as its main businesses in which aggressive expansion measures are to be taken. Demand for rare earth magnets will continue growing. This reflects the need to reduce dependence on fossil fuels and environmental impact while promoting the construction of infrastructure and improvement in living standards in emerging economies. SDK is committed to ensuring stable supply of rare earth magnetic alloys as a means to contribute toward creating a society where affluence and sustainability are harmonized.

Outline of Ganzhou Zhaori Rare Earth New Materials Co., Ltd.


Location: Economic & Technical Development Zone, Ganzhou, Jiangxi Province, China
Capital stock: 900 million Yen (Owned 80% by SDK; 10% by Tokai Trade Co., Ltd.; and 10% by two Chinese joint venturers)
Establishment: August 2006
Chairman: Nobuhiko Kawamura (General Manager, Rare Earth Division, Electronics Sector, SDK)
President: Masahide Utsunomiya