Based on the agreements, the joint investment sum will be 800 million RMB (€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 say they 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, and H.C. Starck in the manufacturer of tungsten metal powder and tungsten carbide.
H.C. Starck says that the joint venture is a crucial element of the company's strategy to expand its presence in China. "This Joint Venture is our largest project in China to date and is a core part of our growth strategy in Asia, said Andreas Meier, CEO of H.C. Starck. "With this step, we aim to significantly accelerate our capabilities to better serve the fast growing Chinese market."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."
Zhong Xiaoyun, President and CEO of JXTC said: "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.”
The joint venture agreements are subject to governmental approval.