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Showa Denko K.K.
September 12, 2007

Showa Denko K.K. (SDK) today opened its second rare-earth magnetic alloy plant in China. The plant, under construction since August 2006 and completed at Ganzhou, Jiangxi Province, has the capacity to produce 2,000 tons per year of neodymium (Nd)-based alloys for high-performance magnets, using SDK’s advanced quick-cooling technology*. An opening ceremony was held today at the plant. SDK is already operating another Nd-based magnetic alloy plant in Baotou, Inner Mongolia, China.

The new plant at Ganzhou is operated by Ganzhou Zhaori Rare Earth New Materials Co., Ltd., SDK’s joint venture with Tokai Trade Co., Ltd. of Japan and two Chinese rare-earth mineral producers, namely, Ganzhou Qiandong Industrial (Group) Co., Ltd., and Ganxian Hong Jin Rare Earths Co., Ltd.

Nd-based high-performance magnets are being used in voice coil motors of hard disk drives, motors for hybrid cars, and electric power steering devices. For automotive magnet 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 enable SDK to supply high-quality alloys in a stable manner in response to rapidly growing demand for Nd-based high-performance magnets.

Under the ongoing medium-term consolidated business plan, the Passion Project, SDK is allocating much of its resources to operations in the Electronics segment. SDK is committed to providing advanced products that satisfy customer requirements by securing raw materials and developing new technologies.

For further information, contact:
IR & PR Office (Phone: 81-3-5470-3235)

*SDK’s advanced quick-cooling technology:
The technology ensures the production of high-quality magnetic alloys through high-speed quenching of molten rare-earth raw materials on a water-cooling roll. This leads to the formation of a fine cast structure.

Chairman Hashimoto of Ganzhou Zhaori Rare Earth New Materials Co., Ltd. starting up the plant

Production facilities within the new rare-earth magnetic alloy plant