Shin-Etsu Chemical to Establish Rare Earth Refinement Plant

Shin-Etsu Chemical announced on Wednesday the firm establishes a new plant for rare earth separation and refinement in Fukui Prefecture, Japan. The firm has produced rare earth and rare earth magnet at Takefu plant in Echizen City of Fukui Prefecture. There is no room for additional output expansion in Takefu plant. Then the firm decided to construct a new plant at 2 billion yen investment which can produce rare earth oxide at 1,000 tonnes per annum. The construction is scheduled from August 2007 to February 2008.Shin-Etsu Chemical acquired a site of 62,492 square meters in TechnoPort Fukui, in Mikuni-cho, Sakai City of Fukui Prefecture at 1 billion yen. The firm selected the site for cooperative operation of a new plant and Takefu plant. The firm also invests 1 billion yen for a building of 1,500 square meters and productive equipment. Unused land is prepared for the next output expansion or the introduction of magnet producing processes.Rare earth magnet, the main material of which is neodymium, is used for motors inside of hybrid electric vehicles and energy-saving air conditioners. The demand maintains increasing.