Showa Denko announced on Wednesday the subsidiary, Ganzhou Zhaori Rare Earth New Materials in Jiangxi expands production capacity of neodymium based rare earth magnetic alloy by 50% to annual 3,000 tonnes in the month for around 200 million yen. Showa Denko’s Chinese output capacity of magnetic alloy increases to annual 4,000 tonnes including the subsidiary, Baotou Showa Rare Earth Hi-tech New Material in Inner Mongolia.
The produced alloy including expanded capacity will be shipped to Japan. Showa Denko tries to serve drive motor of hybrid vehicle, electric power steering device and voice coil motor of hard disc drive. Neodymium based high performance magnet for automotive applications needs dysprosium adding for high magnetic force at high temperature. Two partner companies with total 10% interest in Ganzhou Zhaori Rare Earth New Materials are Chinese top class rare metal makers with iron adsorption ore mines and separation, purification and smelting facilities. The partners contribute to stable supply of high quality alloy by Showa Denko. The firm tries to reduce dysprosium content in the alloy for efficient utilization of limited rare earth resources. Rare earth business is one of the core businesses for Showa Denko’s future growth. The firm tries to expand the business for mid- and long term growth.Japan Steel Scrap Composite Prices (Sangyo Press)
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