Indian ferrite supplier Delta Magnets Group (DMG) is set to enter a joint venture with an unnamed Chinese rare earth magnet manufacturer, a senior company official revealed on Saturday.
Established in 1984, DMG specializes in soft and hard ferrites and has offices in India and the U.K. The company recently partnered with Japanese electronics giant TDK to manufacture magnets in India.
"We are in the advanced stage of concluding an association with a Chinese rare earth magnet manufacturer for setting up a joint venture in India," Abhilash Sunny, CEO of DMG, said in an interview with the Electronics Bazaar magazine.
"This will help us stay ahead in the industry, enabling us to offer all the products in one basket."
Sunny also said that the company has requested investment bankers to shortlist suitable firms for acquisition.
"We constantly strive to grow and develop. We are always open to learning and hence always look out for a suitable expansion/partnering opportunity," he added.
China contains the largest deposits of rare earth magnets in the world, with foreign companies importing their requirements from the country. According to a 2013 report from the Wall Street Journal, 80 percent of specialized magnets containing rare-earth materials like neodymium are sourced from China.
On Tuesday, the General Administration of Customs (GAC) released data showing that China's exports of rare earth permanent magnets increased by almost 23 percent in the first nine months of 2014.
"The increasing exports of Chinese NdFeB products is an indication of the gradual increase in the domestic production of high performance, price competitive magnets to meet demand in the various end-user sectors," the GAC noted in its report.