Business Visits
Asian Metal visits Fugu Yide
On the morning of December 27th, 2025, Ms. Daphne Zhang, the Consultant & Senior Product Manager of Asian Metal, visited Fugu Yide Magnesium Alloy Co., Ltd. and held in-depth discussions with Deputy General Manager Mr. Hui Wang on the current status and development trends of the magnesium industry. Currently, primary magnesium producers are generally considering industrial expansion, which is not only a tactical adjustment to cope with short-term price pressures but also a strategic necessity in response to the restructuring of the industry chain’s value. The profit margin in the upstream smelting segment continues to be squeezed, while the lightweight application demand in sectors such as new energy vehicles, aerospace, and 3C consumer electronics has surged, creating high-value opportunities. The model of solely producing magnesium ingots is no longer sustainable. Extending the business to magnesium alloy preparation and even further to the design and manufacturing of end-use components is a critical path to seizing discourse power in the industry chain and transforming raw material cost advantages into performance premiums for end products.
From left: Hui Wang, Daphne Zhang
Fugu Yide Magnesium Alloy Co., Ltd. was established in October 2004 and is located in the Guojiawan Industrial Park, Fugu County, Shaanxi Province. Leveraging the region’s energy advantages and adhering to the principles of energy conservation, environmental protection, comprehensive utilization, and sustainable development, the company has established a circular economy development model with an annual production capacity of 20,000 tons of magnesium metal, 10,000 tons of ferrosilicon, 300,000 tons of blue-coke, 30,000 tons of coal tar, and 5,000 reduction pots. The company achieves an annual industrial output value of 450 million yuan. Its primary product, primary magnesium ingots, is produced using the silicothermic reduction method (Pidgeon process). The process involves calcining selected dolomite, mixing and grinding the calcined dolime with ferrosilicon and a small amount of fluorite powder in specific proportions, compressing the mixture into pellets using a briquetting machine, and then loading the pellets into reduction pots. Through a high-temperature reduction reaction at 1,200°C in regenerative energy-saving reduction furnaces, crude magnesium is extracted. The crude magnesium is then refined and cast using a continuous casting machine to produce finished magnesium ingots. The magnesium ingots comply with the Chinese national standard GB/T3499-2011 for magnesium metal. The yield of first-grade magnesium ingots exceeds 80%, while the yield of second-grade magnesium ingots exceeds 95%. The production and service of magnesium metal products are certified under the ISO9001 Quality Management System.
