TORONTO, Oct. 20 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") reported today that the Company's Magnequench division has entered
into a joint venture agreement with Toda Kogyo Corp. ("Toda Kogyo"). 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
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.
About Toda Kogyo
Toda Kogyo is one of the most advanced Japanese producers of iron oxide
particles which are essential raw materials, or integral components of
industrial and consumer products. Toda Kogyo also produces Nd-Fe-B based
compounds using Magnequench's Neo Powders.
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered
materials and applications through its Magnequench and AMR Performance
Materials business divisions. These innovative products are essential in many
of today's high technology products. Magnequench's neo powders are used to
produce bonded magnets, generally used in micro motors, precision motors,
sensors and other applications requiring high levels of magnetic strength,
flexibility, small size and reduced weight. Rare earth and zirconium
applications include catalytic converters, computers, television display
panels, optical lenses, mobile phones and electronic chips. The Company is
headquartered in Toronto, Canada and has approximately 1,300 employees in 15
locations, across 10 countries.
For further information: Michael Doolan, Chief Financial Officer, (416) 367-8588, ext.335, Website: www.neomaterials.com, e-mail: firstname.lastname@example.org;
Ali Mahdavi, Investor Relations, (416) 962-3300, ext. 225, e-mail:
CO: Neo Material Technologies Inc.
NI: MNG VNT
-0- Oct/20/2008 11:00 GMT
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