SHANGHAI, Jun 23 (SMM) — Jintian Copper announced on June 15 that in order to meet the development needs of the rare earth permanent magnet material business of Ningbo Jintian Copper (Group), further expand the capacity of rare earth permanent magnet products to meet the increasing demand for downstream mid-to-high-end products and strengthened the company’s core competitiveness, Ningbo Ketian Magnetic Industry, a wholly-owned subsidiary of the company, and Baotou Rare Earth High-tech Industrial Development Zone Management Committee signed the "Entry Agreement of Ningbo Ketian Magnetic Industry Co., Ltd. with an Annual Output of 8,000 mt of High-end Manufacturing, High-performance Rare Earth Permanent Magnet Materials and Device Project”. Total investment is estimated at 60 million yuan. The project will be implemented in two phases.

The 4,000-mt capacity of the first phase will commence in August 2021 and be completed in August 2023; the 4,000-mt capacity of the second phase will commence in December 2023 and be completed in December 2025.

The first phase has a total investment of 370 million yuan to build a production line with an annual output of 4,000 mt of high-end, high-performance rare earth permanent magnet materials and devices, and build a plant and office that can meet the annual production capacity of 8,000 mt of high-end, high-performance rare earth permanent magnetic materials and devices. 

The total investment in the second phase is 230 million yuan. In the second phase, a high-end, high-performance rare-earth permanent magnet material and device project with an annual output of 4,000 mt will be built on the project's land.

Jintian Copper was founded in 1986 and has been focusing on its main business for 35 years. Its main products include copper products and rare earth permanent magnet materials. The company's total output of copper products stood at 1.38 million mt in 2020. The company's copper semis products include copper rods, copper strips, copper tubes, copper wire rows and magnet wires, with a complete product system, complete varieties and models. Different products are priced differently due to the effect from industry competition and technology. Generally speaking, gross profit margin of copper strip, copper tube and magnet wire is relatively high; copper wire row products have high standardisation, short process flow, high installed capacity, large scale of production and sales. Investment yield and assets turnover rate are high.

In terms of industrial chain layout, Jintian Copper’s copper product system is complete, covering major categories in the field of copper and copper alloy materials, including copper rods, copper strips, rods, copper tubes and copper wires (rows). The company made footprints into downstream processing fields to complete the industrial chain extension, such as valves, water meters, electromagnetic wires, etc. The company has developed into one of the most complete enterprises in the domestic copper processing industry chain. The gross profits of the company's magnetic materials and valves are relatively high.

At present, the company has six major production bases in Jiangbei of Ningbo, Hangzhou Bay New Area of Ningbo, Changzhou of Jiangsu, Zhaoqing of Guangdong, Jiangjin of Chongqing, Qianjiang of Vietnam), and subsidiaries or offices in Hong Kong, the United States, Germany, Japan, Thailand and Singapore. The company will accelerate internationalisation of the company during the "14th Five-Year Plan" period,  and provide one-stop procurement services for global customers.

The company's rare earth permanent magnet products are widely used in new energy vehicles, forming a synergistic effect with copper products.