By Kari Williamson
“This transaction will link two unique companies – one with a world-class, high-quality resource, and the other with world-class rare earth product design and processing capabilities,” says Mark A. Smith, Molycorp’s President and CEO.
“Neo Materials is recognised throughout the industry for its exceptionally high-quality production and processing capabilities, its patented technology platform, and its ability to consistently meet demanding customer specifications. With this combination, Molycorp will be in a unique position to enhance our time to market and provide new global customer segments with rare earth metals, oxides, and alloy powders that are unmatched today. We see significant opportunities for growth as well as powerful synergies through this transaction.”
The acquisition expands Molycorp’s geographic reach across 11 countries, and adds rare earth metal product development, research, and sales capabilities.
Furthermore, the transaction adds Neo’s direct operating and sales channels in China, the world’s largest and fastest growing rare earth consuming nation. Molycorp says China accounts for 70% of global rare earth metal consumption.
The combination of the two companies will expand Molycorp’s technology portfolio to include production of magnetic powders, and rare metals including gallium, indium and rhenium, as well as zirconium oxide for industries such as advanced electronics, thin-film solar photovoltaics (PV), LEDs, flat screens, super alloys, catalytic converters, mobile and smart phones, magnets, and batteries.
“The industrial logic of this combination is highly compelling,” says Constantine Karayannopoulos, President and CEO, Neo Materials.
“We will be vertically integrating the world’s best rare earth resource outside of China with the world’s best rare earth processing technology company. The new enterprise will have the broadest global coverage in the industry, as well as a strategic position in high-value magnetic materials and rare and other strategic metals. We look forward to this transaction and believe our employees, partners, shareholders, and customers around the world will benefit greatly as a result.”