ALCONIX, Taiyuan Yiwei to Launch Magnesium Ingot JV in Shanxi

ALCONIX Corporation announced on Thursday the firm agreed with Taiyuan Yiwei Magnesium Industry to build magnesium ingot making joint venture in Shanxi, China. Taiyuan Yiwei controls 51% of the joint venture with 49% share by ALCONIX. The joint venture with 9.5 million yuan of capital will start operation in September. Chinese magnesium smelting represents more than 80% of world output. Magnesium makers make magnesium ingot through dolomite heat reduction, of which initial cost is one twenty fifth of electrolytic process. The joint venture makes the ingot with exhaust gas due to cost advantage compared with coal energy. ALCONIX tries to make use of the low cost operation with environmental friendly facility. The firm also expands the magnesium business through the partnership with one of the world largest magnesium makers of Taiyuan Yiwei. Taiyuan Yiwei produces 64,000 tonnes of products and expands the operation to the world largest 84,000 tonnes in the year.