Makers of magnetic materials in Dongyang continue to raise production and pursue R&D to keep the city’s key position in the industry.
China manufacturers of magnetic materials in Dongyang in Zhejiang province will continue to boost production and R&D in the next five years. This is in line with efforts to solidify the city’s status as a key local and global hub for the segment. Dongyang accounts respectively for 37 and 15 percent of China’s and the global total capacity.
|Zhejiang province’s Dongyang accounts for 12 percent of the global capacity for magnetic materials.|
Hengdian DMEGC Magnetic Co. Ltd has been increasing output by 10 to 20 percent in past years. It has invested $20 million in a MnZn project, which is currently under construction. Scheduled to commence mass production in December this year, the factory is expected to realize total sales of $20 million by 2012.
For this year, Hengdian DMEGC hopes export sales will surpass $100 million as product qualification rate reaches 99 percent. The country’s largest manufacturer of permanent and soft ferrite magnets, it owns 16 and 10 percent share of China’s total yield for the categories.
Zhejiang Kaiven Holding Co. Ltd, on the other hand, has invested close to $1.5 million in the reconstruction of its factory and the installation of new production and test equipment.
In addition, suppliers will continue to focus R&D on upscale models until 2012. They will aim for the communications, information technology and automotive sectors.
Applications cover LED products, energy-saving home appliances, 3G devices and intelligent power supplies.
Hengdian DMEGC will concentrate on updating technology used in high-performance materials such as DMR95, DMR47, DM50B and DMR24. Zhejiang Kaiven, on the other hand, has introduced upscale KV40/40 magnets, which are widely used in automotive motors.
Based on sales, Dongyang is expected to generate $1.4 billion of China’s $7.4 billion total by 2015. Its exports will touch $500 million.
The city plays host to 122 manufacturers and up to 30,000 workers in the line. It boasts two dedicated zones, the Hengdian Electronic Industry Park and the Lizhai Industry Park. Both have been attracting up- and downstream suppliers of magnetic materials locally and from abroad.
Dongyang was designated as the national magnetic materials base in 2006, the national magnetic material technology innovation center in 2009 and China’s magnetic materials city last year.
Overall, China churns out 830,000 tons of ferrite magnets, 480,000 soft ferrite and 120,000 NdFeB. These represent 65, 70 and 90 percent of the global total, according to statistics from the China Electronic Components Association.
Note: This article "Dongyang strengthening magnetic materials industry" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.
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