Showa Denko to Raise Vietnam Rare Earth Material Output

Showa Denko tries to increase operation of Vietnamese rare earth material for magnet alloy to full capacity in 2012. The firm expects the production increases from current several tens of tonnes to 800 tonnes per year. The firm tries to increase the production to meet growing demand for high performance neodymium magnet in hybrid vehicle, electric vehicle and energy saving appliances.

The firm increases the operation at Showa Denko Rare-Earth Vietnam, which started the operation in 2010. The plant processes Vietnamese rare earth material and recycled material from magnet to make didymium metal and dysprosium metal, both of which is material of alloy for high performance neodymium magnet, to provide Showa Denko’s magnet alloy making operation.

Showa Denko depends on China for major part of neodymium and dysprosium supply. The firm expanded Chinese joint venture’s production capacity from annual 2,000 tonnes to 3,000 tonnes in Jiangxi in July. Showa Denko now has annual 4,000 tonnes of Chinese alloy production capacity including other joint venture in Inner Mongolia.

Showa Denko’s president Hideo Ichikawa said at press conference on Wednesday the firm will revise operating profit target for 2012 downward from 62 billion yen announced in 2010. The firm cannot clear the target under the historical high yen rate when the firm exports major part of graphite electrode and hard disc drive in dollars while the firm made the target based on 90 yen per US dollar of rate.