Vietnam: Rare Earth Magnets Shin-Etsu Doubles Production of Rare Earth Magnets in Vietnam
Shin-Etsu Chemical announced plans to double the production capacity of rare earth magnets in Vietnam’s Hai Phong Province.
Hanoi/Vietnam — Currently, the group company Shin-Etsu Magnetic Materials Vietnam (SMMC) has a capacity of 1,100 tons of rare earth magnet per year. With the expansion, the manufacturer will double its production capacity to 2,200 tons/year. The investment amount for this expansion project is expected to be Yen 5 billion (approx. € 38 million), and the completion of the construction is scheduled for the middle of 2018.
SMMV completed the construction of a rare earth magnet manufacturing plant in Vietnam in 2016. The expansion is part of a second phase of the plant’s construction work. Together with the expansion of the rare earth magnets production capacity at its Vietnam facilities, the company is establishing an integrated manufacturing system at SMMV. The company's objective is to cope with the increasing demand for rare earth magnets, mainly for automobile applications.
The rare earth magnets manufactured at SMMV will be shipped to end-users after being processed in plants established in other countries in Southeast Asia. Rare earth magnets are used in a wide range of applications such as automobile applications starting with hybrid cars and electric cars, air conditioners, and hard disk drives.