H.C. Starck and Jiangxi Rare Metals Tungsten Holding Group Co. Ltd. Sign Joint Venture to Strengthen Advanced Tungsten Products Business in China
HONG KONG, May 18, 2011 /PRNewswire/ — H.C. Starck, one of the world’s leading manufacturers of refractory metals and advanced ceramics, and Jiangxi Rare Metals Tungsten Holding Group Co. Ltd. (JXTC), one of China’s largest tungsten mine operators, signed today two agreements in Hong Kong to form a Joint Venture to produce advanced tungsten chemicals, metal and carbide powders. For H.C. Starck the Joint Venture is a crucial element of the company’s strategy to expand its presence in China. Based on the agreements, the joint investment sum will be 800 million RMB (Euro 85 million) to establish two companies based in the Chinese city of Guanzhou. With an installed capacity of 30,000 tons, by 2012 both companies will be producing approximately 10,000 tons of advanced tungsten products for the market annually.
Each partner holds the majority share in one of the two companies: JXTC in the manufacturer of ammonium paratungstate and tungsten oxide; H.C. Starck in the manufacturer of tungsten metal powder and tungsten carbide. The establishment and development of these two joint ventures will support the high-tech development of the tungsten industry in Jiangxi as well as in China. It will also provide additional economic and social benefits to the Jiangxi Province.
“Both JXTC and H.C. Starck are key players in the refractory metals industry, and have a unique expertise and a long-standing company history. This Joint Venture will definitely have a very positive impact on China’s as well as on the world’s refractory metal industry development. It will be a role model for Sino-German refractory metal strategic cooperation,” said Zhong Xiaoyun, President and CEO of JXTC.
“This Joint Venture is our largest project in China to date and is a core part of our growth strategy in Asia. With this step, we aim to significantly accelerate our capabilities to better serve the fast growing Chinese market,” said Andreas Meier, CEO of H.C. Starck. “Our outstanding long-term relationship with JXTC, the intense efforts shown by both parties during the negotiations, and the support of government agencies in China all helped to ensure a smooth process in the founding of these joint ventures. We believe that the Joint Venture will provide a win-win situation for both partners.”
Advanced tungsten products are used as high performance materials in a variety of different growth industries, including specialty cutting tool manufacturing, wear parts for mining, tunnel and street construction, as an alloy metal, and for components in the aerospace and medical engineering industry.
The companies benefit from the strengths of both partners, explained Andreas Meier. “The combination of a long-term secured supply of raw materials and a high level of technology expertise will enable us to provide the fast-growing Chinese market with advanced and high-quality tungsten products – and emphasizes the global leadership of H.C. Starck in tungsten.”
“China is the largest growth market of the future. And with our joint ventures, we will provide the same services to this market that are well known to our customers in other parts of the world for many years – a secure supply of raw materials and high-quality products combined with reliable, customer-oriented service,” said Kurt Wandaller, Head of the Tungsten, Molybdenum, and Rhenium Business Unit of H.C. Starck. “And we are supporting local and international companies in their efforts to serve the increasing Chinese demand.” The Joint Venture agreements are subject to governmental approval.
About H.C. Starck
The H.C. Starck Group is a leading global supplier of refractory metals and advanced ceramics, and uses its own manufacturing facilities in Europe, America, and Asia to serve growing sectors such as the electronics, chemical, automotive, medical engineering, aerospace, energy technology, and environmental technology industries, as well as mechanical engineering and tool manufacturers. H.C. Starck has close to 3,000 employees worldwide. You can find additional information about the company by visiting: www.hcstarck.com/press
About Jiangxi Rare Metals Tungsten Holding Group Co. Ltd.
Jiangxi Rare Metals Tungsten Group Holding Co., Ltd. is a large industrial enterprise devolved from central authority administration with a history of more than one hundred years. It has become the largest mining group characterized by tungsten and rare earths, and integrated with varieties of nonferrous metals mining, dressing, refining, processing, trading, and equipment. You can find additional information about the company by visiting: www.jxtc.com.cn
SOURCE H.C. Starck