Neo Performance Materials acquires SG Technologies Group

press release

April 18, 2023

Neo has announced the acquisition of a controlling interest in SG Technologies (SGTec) Group Limited, one of Europe's leading advanced, specialty manufacturers of rare-earth-based and other high-performance magnets for industrial and commercial markets.
The purchase further expands Neo's rare earth processing and magnet manufacturing footprint in Europe in alignment with the company's plans to launch production in 2025 of sintered rare earth magnet manufacturing in Estonia for the electric vehicle, electronics, energy-saving specialized motor applications markets, and other high-growth- potential nascent technology applications that are critical to the current global energy transition.

Neo Performance Materials Inc. is a Canada-based company that manufactures advanced industrial materials such as magnetic powders and magnets, specialty chemicals, metals and alloys. 

With over 200 employees working just outside of London, SGTec was first established in the UK in the 1940s as an aluminum-nickel-cobalt permanent magnet manufacturer. Today, SGTec produces a variety of high-performance magnets and magnetic assemblies for some of the world's leading brands in electric and hybrid vehicles, multifuel and medium-duty engines, hydrogen fuel cell vehicles, off-highway fuel systems, automotive systems and consumer electronics. It is recognized as a leader in the production of fully dense bonded neodymium-iron- boron ("NdFeB") magnets, soft magnetic composites (used in high-speed solenoids and electric motor applications) and other high-performance magnets. For example, non-rare earth magnets made by SGTec for automotive fuel injectors are helping vehicle manufacturers prepare to meet new and more stringent vehicle air emissions standards under the proposed Euro 7 standards.

"I am very pleased to welcome the many outstanding engineers, scientists, and professionals at SGTec into Neo's global team, whose decades of experience, know-how, and leading-edge R&D will unlock unique synergies working as a unit with our world-class magnetics division," said Constantine Karayannopoulos, chief executive officer and director of Neo. "This combination is highly complementary to Neo as we continue to move up the value stream. It expands our magnet manufacturing and product development footprint in Europe. It brings us in closer proximity to key customers in Europe, which facilitates more efficient production supply chains. Finally, this combination will help us increase our exposure to new markets and high-growth applications."

"Neo Magnequench has served as a proud supplier of magnetic powders to SGTec for more than two decades, and we recognize the significant value and growth potential that SGTec brings to Neo Magnequench," added Greg Kroll, Neo executive vice president and head of the company's Magnequench business unit. "SGTec is known in the industry for its decades-long uninterrupted track record of R&D commercialization and reputation for its exceptional product quality, its technical skill and ability to meet extraordinarily challenging tolerances and performance specifications, and its creativity and product innovation. The SGTec team will very nicely augment the skill sets of our teams at Magnequench and help us to accelerate our effort to serve rapidly growing markets across Europe and elsewhere."

Neo continues to advance its previously announced plans to construct and operate a sintered NdFeB magnet manufacturing facility outside of Narva, Estonia, conveniently situated near Neo's existing rare earth separations and rare metal production facility in Sillamäe, Estonia. Neo expects to launch Phase 1 production of 2,000 tonnes/year of NdFeB magnet block in Estonia starting in 2025. As commercial discussions with magnet customers indicate significantly higher demand than Neo's Phase 1 production plans, Neo intends to expand production to Phase 2 levels of 5,000+ tonnes/year thereafter. The company plans to break ground on the new plant in 2023.

Image courtesy of Neo Performance Materials.


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