TORONTO, April 25, 2012 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) ("NEO" or the "Company"), today announced the official opening of its gallium tri-chloride production facility located in Hyeongok Industrial Zone, in the Republic of Korea.
Following the Company's acquisition of an 80% ownership in Oklahoma-based Gallium Compounds in August 2011, NEO initiated the design and construction of a new facility in Korea, utilizing Gallium Compounds' proven technology for the production of gallium tri-chloride in Asia. This second manufacturing facility is now operational and is strategically situated in the heartland of Korea's booming LED industry. This new plant will supply Asian markets as well as serve as a back-up for the plant located in Quapaw, Oklahoma. NEO owns 80% of this new production facility with the remaining 20 percent owned by the founders of Gallium Compounds, Greg Evans and Kevin Reading.
"We are extremely pleased with the progress we have made in the gallium tri-chloride market since acquiring a majority stake in Gallium Compounds," said Geoff Bedford, Executive Vice President and COO. "Our ability to have this new, state-of-the-art plant in operation within seven months is a testament to our ability to execute quickly in a high growth market. This is an important step in our growth strategy for rare metals."
About Neo Material Technologies
Neo Material Technologies Inc. is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications, and other rare metals and their compounds through its Magnequench and Performance Materials divisions. These innovative products are essential in many of today's high technology products. Magnequench's Neo Powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips. The Company's rare metals products are primarily used in the wireless, LED, flat panel, turbine, solar and catalyst industries. The Company is headquartered in Toronto, Canada.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, technological developments, and development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Neo Material Technologies Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
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