Japan’s Shin-Etsu to Double Output of Rare Earth Magnets in Vietnam

Tuan Minh

14:30 23/06/2017

BizLIVE - The Japanese company will invest $45 million in its existing plant in Vietnam to meet rising demand for rare earth magnets.

Japan’s Shin-Etsu to Double Output of Rare Earth Magnets in Vietnam

Demand for rare earth magnets is on the rise. Photo: wikipedia

Shin-Etsu Chemical, Japan’s largest chemical company, aims to double its production of rare earth magnets in Vietnam, which have seen rising demand from clients for the items used in robots as well as the motors of hybrid and electric vehicles, the Nikkei Asian Review reported.
To meet its target, the Japanese company will spend some $44.9 million on new equipment at its factory in the Dinh Vu Industrial Park in the northern city of Hai Phong, where Shin-Etsu makes magnets containing rare earth elements such as neodymium and dysprosium.
Shin-Etsu initially invested two billion yen ($18 million) in the plant. With the new investment, the plant's annual capacity will reach 2,200 tons starting next year.
The new equipment will handle the entire production process, including alloy melting, milling, pressing and sintering. Currently alloy melting is done in China.
According to Nikkei, industrial uses for rare earth magnets are growing, with applications extending to robots and air conditioning. Demand for the magnets is estimated to grow 10% annually, with a 20% annual increase expected for automobile use.
Vietnam is one of the countries having the largest rare earth reserves, with the volume estimated at 22 million tons, mostly in northwest of the country.
Japanese firms have become the early birds in this industry in Vietnam. Nikkei in October 2011 reported that Japan’s Toyota Tsusho and Sojitz would partner with Vietnam’s Lavreco to form a joint venture for rare earth exploitation.


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