Sheensen Magnetics to invest RMB200 million to enlarge production in 2018

Asian Metal: Thanks a lot for accepting the interview of Asian Metal, Mr. Bao. Would you like to introduce your company firstly?

Bao: Established in 2002, Zhejiang Sheensen Magnetics Technology Co., Ltd., (hereafter referred to Sheensen Magnetics), is a high-tech corporation and devotes to rare earth permanent magnetic’ research, production and applications. The company was renamed in 2012 and moved to AnjiTenshi Lake Industry Zone.

Sheensen Magnetics always insist on the management belief of "Technology innovates production, Good quality creates the market, Excellent performance create famous brand, and Share success with the staff." Due to the unceasing management improvement, the company was certified by ISO9001:2008, ISO/TS16949:2009 and ISO14001:2004, and owns 20 national patents. Their products are currently widely used in automotive, new energy vehicle, wind turbine, robot , inverter air conditioner, elevator and etc.

Based on a high starting baseline, committed to high levels of development, Sheensen Magnetics owns a series of advanced production and R&D equipment; with a strong R&D team full of first-class experts and technicists, Sheensen Magnetics cooperated with China Jiliang(Quality) University and established China Jiliang University Sheensen R&D center. The company continually prompts technological innovation and becomes one of the first-class enterprises in the fields of high-end research and development of permanent magnet.

Asian Metal: Would you please to introduce your career experience?

Bao: I entered NdFeB magnet industry since 2007 and was pointed as the general manager of Liansheng Magnetic Material Co., Ltd. in 2008. I became the general manager of Zhejiang Sheensen Magnetics Technology Co., Ltd. since 2012.

Asian Metal: Current Chinese NdFeB magnet industry was oversupplied. As far as we knew, the current Chinese NdFeB magnet production capacity reached 300 thousands but the demand from global end users was only 150 thousands per year. Would you like to introduce how to survive among the fierce competition?

Bao: We have predicted that the NdFeB magnet market would witness the increasingly fierce competition, so we made and implemented the strategy of "three strong and one instruction", which means to enhance the technology and research in order to maintain the advantage of products, to strengthen the management in order to maintain the advantage on production efficiency, to enhance the brand in order to reserve the quality and reputation, to foster enterprise culture in order to maintain the development motivation.

Asian Metal: The rare earth raw material prices kept show uptrend in the first three quarters of 2017. The prices hit the peak in September of 2017. Taking PrNd mischmetal prices for example, the prices climbed up RMB655,000-665,000/t D/A 30 days in early September of 2017, with a sharp increase of 96.7% from early 2017. Many magnet producers disclosed that they have difficulty in rising NdFeB magnet prices. May I know what your company's status is? Did you come across problem when you were rising NdFeB magnet prices last year?

Bao: The rising rare earth raw materials prices put pressure on our sales and we have to develop new products actively as well as to master the pricing power. In additional, we have to decrease production cost by optimizing producing technology, improving efficiency and reducing waste. Anyway, we have to try our best to change the crisis into an opportunity.

Asian Metal: May I know how about your company's operation situation in 2017? Whether your revenue in 2017 increased sharply YOY?

Bao: Our company operated well in 2017 and our sales climbed by 40% YOY. In order to meet the company's development need, we are going to invest RMB200 million to enlarge workshop and production capacity. Our production capacity is supposed to reach 3,000t in 2020.

Asian Metal: Would like to share your opinion about China's NdFeB magnet output in 2017? Do you think it raised YOY?

Bao: In my opinion, China's NdFeB magnet output in 2017 was 1.3 million tones, which increased YOY.

Asian Metal: NdFeB producers adopt hand-to-mouth purchasing strategy even when rare earth prices are rising after 2011. What's strategy your company is adopting?

Bao: We also mainly adopt hand-to-mouth purchasing strategy on condition that we have safety stocks.

Asian Metal: What's your opinion about Chinese NdFeB magnet's prospect? What's do you think is the biggest challenge of Chinese NdFeB magnet industry?

Bao: I am optimistic about Chinese NdFeB magnet industry, but the market must be occupied by the "three strong" companies. "Three strong" means good at technology, management and brand.

Asian Metal: Thanks for your time. Wish your company better development in the future.