Tokyo, Nov 29, 2011 - (JCN Newswire) - Daido Steel Co., Ltd. (Daido), Mitsubishi Corporation (MC), and Molycorp Inc. (MCP) have reached an agreement to establish a joint venture to manufacture and sell a next-generation Neodymium Iron Boron (NdFeB) sintered magnet in Nakatsugawa, Gifu Prefecture.
The capital contribution ratio of the newly formed company is 35.5% by Daido, 34.5% by MC and 30% by MCP. The business of the new company will be financed by the three shareholders and a government subsidy sponsored by METI under the rare earth supply measures program. A next-generation NdFeB magnet manufacturing plant with an initial annual production capacity of 500 tons will be constructed in Nakatsugawa, Gifu Prefecture and plan to commence operation by January, 2013.
Presently, NdFeB magnet known as the most powerful permanent magnet is made from rare earth materials such as neodymium, dysprosium and etc. is applied as key components for high performance motors (power train motors for electric vehicles and hybrid vehicles, compressors for air conditioners and wind power generators) and its demand is expected to increase with the growth of environmentally friendly technologies.
The joint venture will be licensed intellectual properties of NdFeB magnet production developed by its inventor Dr. Masato Sagawa to manufacture next-generation NdFeB magnet and will be supplied with rare earth materials from MCP's rare earth mine in Mountain Pass, California, U.S.A.
The new company will engage in the manufacturing and sales of the next-generation NdFeB magnet for which significant increase in demand is foreseen by taking full advantage of Daido's commercial scale magnet manufacturing technologies, MC's worldwide marketing and sales network, and MCP's rare earth resource supply.
The three shareholders have agreed to get the business of the new plant in Nakatsugawa on track within a short period of time and expand operations in the US and other international regions in the future.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
About Daido Steel Co., Ltd.
Daido Steel Co., Ltd. was established in 1950 and is involved in the manufacture of specialty steel products. Specialty steel products accounted for 68% of fiscal 1999 revenues; wholesale and distribu
Contact:
Mitsubishi Corporation
Telephone: +81-3-3210-2171
Facsimile: +81-3-5252-7705
Nov 29, 2011
Source: Mitsubishi Corporation
Source: Daido Steel Co., Ltd.
Mitsubishi Corporation (TSE: 8058) (FTSE: MBC)
Daido Steel Co., Ltd. (TSE: 5471)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Joint Venture
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