Sinomag Technology boosts investment in Vietnam phase II project

Sinomag Technology Co., Ltd. is stepping up its overseas expansion by increasing investment in its Vietnam phase II project, aimed at strengthening its permanent ferrite magnet production capacity.

The project, to be carried out by its wholly-owned subsidiary Sinomag Technology (Vietnam) Co., Ltd., will add annual production capacities of 10,000 tonnes of wet-pressed ferrite arc magnets and 25,000 tonnes of pre-calcined ferrite materials, supporting localized raw material supply.

On February 11, the company's board approved adjustments to the project plan, lifting total investment from the originally planned RMB210 million (USD30.43 million) to RMB358 million (USD51.87 million).

Sinomag also disclosed a private placement plan to raise up to RMB760 million (USD110 million). Proceeds will be allocated to the Vietnam Phase II project, a chip inductor smart manufacturing project, and general corporate purposes, including working capital and bank loan repayment.