Oct 21 2008
Neo Material Technologies Inc. reported today that the Company's Magnequench division has entered into a joint venture agreement with Toda Kogyo Corp. . Under the terms of the agreement, Neo Material's Magnequench division will hold a 33 percent interest in the joint venture with Toda Kogyo holding the 67 percent balance. Based in Tianjin, China, the new entity, Toda Magnequench Magnetic
Materials Co. Ltd. ("TMT), is expected to commence production of rare earth magnetic compounds for injection molded neo magnets during the fourth quarter of 2008.
With an initial 30 tons per month of production capacity, TMT's mission is to accelerate the growth of injection molded neo magnets used in automotive/electronic components and high speed motors. The joint venture allows both parties to work directly with customers in high growth areas in the automotive and electronics markets.
By combining Magnequench's stable supply and development capabilities for neo powders with the production technology of molding materials and processes developed and owned by Toda Kogyo, TMT will enjoy a significant cost and technology advantage in the injection molding magnetic compounds market. As a result, TMT will aggressively pursue growth opportunities in new applications in its target markets. Injection molded neo magnets provide the optimum solution in motor and sensor applications requiring superior magnetic performance coupled with ultimate customization for complex magnetic shapes.