Neo opens upgraded emissions control catalyst plant in China

17 Sep '24

2 min read

Neo opens upgraded emissions control catalyst plant in China

Pic: Neo

Insights

Neo Performance Materials opened its upgraded NAMCO plant in Zibo, China, boosting emissions control catalyst production.
With a $46.4 million investment so far, the facility aims to meet growing demand and stringent emissions standards.
Four of five major customers have completed product qualifications, and full production is expected by the end of 2024.

Neo Performance Materials Inc. (“Neo” or the “Company”) (TSX:NEO) announced the official opening of its new Neo Jia Hua Advanced Materials (Zibo) Co., Ltd. (“NAMCO”) facility, a world-class emissions control catalysts production plant in Zibo, China.

The new facility is a modernization and upgrade of its prior catalyst plant in Zibo, with expanded capacity, improved operating efficiencies, and advanced processing technology. The Company held a grand opening ceremony on September 13, 2024, with customers, employees and local government officials.

“The relocation and modernization of NAMCO enables Neo to continue to service global automotive supply chains to meet more stringent emissions requirements across hybrid vehicle and internal combustion engine platforms. This investment enables NAMCO to meet increased customer demand and maintain Neo’s position as one of the top three global producers of rare earth compounds for environmental and automotive emissions control catalysts. These innovative and advanced technologies play a crucial role in the clean energy transition, and we look forward to continued success in expanding our world-class product portfolio,” said Rahim Suleman, president and chief executive officer of Neo.

Customer requalification is underway, with four of NAMCO’s five major customers already completing their product qualification process for some of their key product lines. Pending customer approval, NAMCO is currently completing final commissioning of its facility and is expected to achieve full production capacity by the end of 2024.

As of June 2024, the Company has invested US$46.4 million in NAMCO’s relocation, upgrade, and modernization. The Company updated its initial project budget to US$70.0 million, a US$5.0 million savings. The remaining investment is expected to be made through early 2025 as the final commissioning milestone payments and exterior work are completed.

The Company is a top three global producer of specialty rare earth compounds for environmental and automotive emissions control catalysts and is positioned to benefit from hybrid and ICE vehicle platforms.