MIRDC assists firms in tapping magnesium alloy die-casting market

Taipei, March 26, 2004 (CENS)--To help domestic firms tap magnesium alloy die-casting market, the government-backed Metal Industry Research & Development Center (MIRDC) will assist domestic firms in developing new products and tapping the magnesium die-casting market.

It is estimated the world magnesium die-casting market is valued at NT$10 billion (US$301.2 million at US$1:NT$33.2) per year. With the establishment of a magnesium alloy die-casting demonstration plant of 1,500 metric tons in pressing capacity, MIRDC has recently signed contracts with several domestic magnesium alloy producers, including Cheng Dar Precision Die Casting Co., Rich Sou Enterprise Co., Wellmag Technology Co., and Yeh Hsin Co., to jointly develop innovative products.

MIRDC said some industrialized nations have been actively developing light metal alloy products that can be applied to the industries of 3C (communication, consumer electronics, and computer), transportation vehicle, biomedical, and sports and leisure.

At present, the annual production value of Taiwan made light metal alloy reaches NT$50 billion (US$1.5 billion) and the amount will grow to NT$80 billion (US$2.4 billion) in 2008 at an annual growth rate of 12%.

Cheng Pei-chuan, chairman of Taiwan Magnesium Association, said magnesium alloy has such favorable features as electricity conduction, electromagnetic wave proof, quick dispersion of heating, and vibration absorption. Many 3C products, including the thin cases of notebook computers, mobile phones, and liquid crystal display projectors, are made of magnesium alloy. In terms of the size of the 3C magnesium alloy industry, Taiwan currently takes the third place in the world, behind only Japan and the U.S.

Cheng said his association was founded in September last year. At present, the association has solicited over registered 100 member companies. The association is dedicated to helping domestic producers of magnesium alloy develop domestic and foreign markets.

According to statistics compiled by MIRDC, the transportation vehicle industry is the largest consumer of magnesium alloy. World output of magnesium alloy parts amounted to 140,000 metric tons in 2002, 74% of which were absorbed by the automobile industry and 24% applied to the 3C industry. The consumption of magnesium alloy in each sedan is estimated at 100kgs in 2020, or 122kgs projected by the U.S.-based Ford Motor Co.

Ford also predicted world consumption of magnesium alloy used in automobile will reach 500 metric tons in 2020. The annual production value of magnesium alloy used in automobile will reach US$2 trillion in 2020.

MIRDC said its demonstration plant is the largest of its kind in Taiwan. The plant has large-sized magnesium alloy die-casting equipment cable of rolling out over three-kilogram alloy. The plant is launched to help domestic relevant firms develop brand-new die-cast magnesium alloy for penetrating the global marketplace.

So far, the plant has cooperated with Yeh Hsin to develop magnesium-alloy satellite receivers, with Wellmag to develop magnesium-alloy bicycle wheels, and with Rich Sou to develop sand-blasting surface-treatment equipment.

Thanks to the cooperation with MIRDC, Cheng Dar has invested NT$200 million (US$6.02 million) to set up a 1,500-metric-ton production line and another 1,800-metric-ton one for the production of large-sized magnesium alloy transportation vehicle parts.