Business
Neo Performance Materials to Purchase Magnet Manufacturing Facility and Expand its Capabilities and Capacity in High-Growth NdFeB Magnet Markets
Neo Performance Materials to Purchase Magnet Manufacturing Facility and Expand its Capabil...
About this update from Neo Performance Materials, Inc.
[{"type":"text","content":"\n\n\n\nNeo Performance Materials to Purchase Magnet Manufacturing Facility and Expand its Capabilities and Capacity in High-Growth NdFeB Magnet Markets\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, July 15, 2019\n\n\n\nCompany to Produce Compression Molded, Neodymium-Iron-Boron (\"NdFeB\") Magnets for Automotive, Home Appliance and Other Markets Using Its Market-Leading Magnequench NdFeB Powders\n TORONTO, July 15, 2019 /CNW/ - Neo Performance Materials Inc. (\"Neo\", the \"Company\") [TSX: NEO] is pleased to announce that its Magnequench subsidiary (\"Neo Magnequench\") has entered into a definitive agreement to purchase the assets of Asia Magnets (\"SAMAG\"), a privately owned manufacturer in Chuzhou, China of compression molded NdFeB bonded magnets, for a purchase price of 68.5M RMB (US$9.9M), plus working capital.  The acquisition will further enhance the value that Neo provides to customers and is expected to leverage Neo's ability to produce high-performance magnetic powders and magnets.  \nLocated west of Shanghai, SAMAG constructed a new production facility in 2016 and recently completed a US$2.9 million capacity expansion, including the installation of new manufacturing equipment and additional production footprint.  This increased capacity and new equipment, which is included in the purchase price, will allow Neo Magnequench to accelerate its strategy to expand into compression molded magnet production. \nSAMAG was founded by Gao Qingguo, a 20-year veteran of the bonded NdFeB magnet industry, and has an established reputation as a reliable and responsive supplier of high-quality compression molded magnets to multiple markets.  Mr. Gao will continue with the Company following the acquisition. \nNeo Magnequench is the global market leader in magnetic powders for high-performance NdFeB magnets, which are critical to supporting the rapid growth of high-efficiency micro motors and sensors used in automobiles, home appliances, industrial automation, and other applications.  NdFeB...