Chuo Denki Kogyo to Start Rare Earth Recycle Plant in Vietnam Fully in May

Chuo Denki Kogyo, Japanese major ferroalloy maker, starts upstream operation of its rare earth recycle plant in Vietnam in May. The plant has already started downstream operation. The plant will launch an integrated recycling process to separate rare earth from magnet scrap and to recycle rare earth as magnetic alloy material. Chuo Denki Kogyo will be able to cover 20% of its rare earth procurement by recycling though the firm has depended on Chinese rare earth. The firm already started deliberation of Vietnamese plant’s expansion. The firm will decide additional investment in the next half year and stabilizes rare earth procurement.

Chuden Rare Earth, a subsidiary of Chuo Denki Kogyo, holds 70% shares in Vietnamese plant, Vietnam Rare Earth. The plant construction completed in December 2010 with initial production capacity at 200 tonnes per year. The plant started operation of downstream electrolysis process. Recently the plant implements test production of rare earths such as neodymium, using intermediate oxide products purchased from third parties. The plant will start upstream process in May 2011, separating rare earth from magnet scrap and processing oxidation products. The plant will become able to supply recycled rare earth metals to Chuden Rare Earth’s magnetic alloy plant in Wakayama, Japan.

Chuo Denki Kogyo started feasibility study for expansion of Vietnamese plant. The firm will decide the next-step investment within this year, according to Mr. Ryo Someya, president of Chuo Denki Kogyo. The firm aims to expand the plant’s recycling capacity as well as to extend the business to process virgin metals from third party’s oxidation products.