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Product category: Manufacturing dealerships, agencies and acquisitions
News Release from: Keronite
Edited by the Manufacturingtalk Editorial Team on 06 March 2007

Magnesium coating partnership set up in
China

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Two production lines will coat magnesium parts cast in a Chinese facility following a partnership agreement announced by Keronite, UK and Chongqing Meridian BoAo Magnesium Co.

Keronite of Cambridge, UK, has announced a partnership agreement has been signed with Chongqing Meridian BoAo Magnesium Co (CMBM) for the installation of a semi-automatic Keronite Plasma Electrolytic Oxidation (PEO) surface treatment line in the industrial centre of south west China The company in Chongqing was established in November 2006 as a joint venture between leading magnesium automotive casting company, Meridian Technologies Inc of Canada and magnesium producer, BoAo Magnesium Co (BAM), of Chongqing, China

It is strategically located in the New North Zone to the north of Chongqing and has excellent transport links to surrounding provinces and to the nearby Yangtze Cuntan docks.

Meridian also has a presence in the Shanghai Area with Shanghai Meridian Magnesium Products, serving the automotive market in China and abroad.

The second facility in Chongqing will expand Meridian's product range to include non-automotive applications such as motorcycle components and the many power tool products that are being produced in central China.

Keronite and Meridian have a longstanding relationship as Paul Arh, director of strategic planning with Meridian, explained: "CMBM approached Keronite when they were looking for a coating partner to install facilities in the Chongqing plant.

The surface treatments offered by Keronite are expected to be competitive and will enable us to meet our customers' growing demand for high quality products." An agreement was reached earlier this month for the installation of a 2000 litre semi-automatic Keronite G3M production line along with a chrome-free anodising process.

The two production lines are expected to be up and running by June and will be dedicated to the coating of magnesium parts cast in the facility.

The Keronite line is designed to have a capacity to coat around 1 million such parts/year.

James Cao, general manager, and Wang Wuyang, chairman of BAM are also looking forward to cooperating with Keronite to develop the market for PEO coatings in China.

"With the magnesium market booming, the potential for Keronite seems endless." Keronite, who already has a smaller batch production line in Kunshan close to Shanghai, will provide the technology and the process equipment for the Chongqing facility, whilst CMBM will provide all services and labour.

Lars Olrik, CEO of Keronite, believed that the new partnership represents a major step forward for the company, forming part of an aggressive expansion strategy in Asia.

"We are very much looking forward to cooperating closely with our new partners to bring the environmental and performance benefits of Keronite technology to a growing customer base in China." Chairman, Nick Kuenssberg, stated that the Chinese magnesium market was a key market for Keronite.

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