“The sale was a win/win transaction for both parties as it provides Micrometals with the ability to expand its product offering, and allows Arnold to focus on its permanent magnet, precision assemblies, flexible magnet and thin strip and foil businesses,” said Tim Wilson, CEO of Arnold. “2009 was a strong year for Arnold in spite of the economy and this divestiture will help us bring more focus to the central businesses that Arnold has served for over 100 years. In addition, it gives us the capacity to accelerate our investments in expanding rare earth magnet production which is crucial to the nation’s green energy initiatives."
This follows the company’s announcement in mid-2009 to begin production of neodymium iron boron magnets in the United States as part of a joint venture with Colorado-based Molycorp Minerals. The companies plans to produce rare earth magnets for the production of hybrid and electric cars, wind power turbines, high tech applications and advanced defence systems.
Arnold will continue to operate two facilities in China producing injection moulded magnets and value added assembly work for the reprographics industry and other commercial uses. Additionally, Arnold serves customers globally from its other six locations in the US and two facilities in Europe.
The full line of powder cores will continue to be manufactured by Micrometals at the factory in Shenzhen, China. The part numbers will remain unchanged, and the supply chain will remain intact, Arnold reports.