The plant, which will begin production in late 2013, will make tungsten metal powders and carbides exclusively for the Chinese market. The facility will create about 400 new jobs.
"This alliance between two giants of the tungsten industry is another successful strategic cooperation integrating into world economy," said Zhong Xiaoyun, president and CEO of JXTC
. "This cooperation plays to the competitive strengths of both partners and creates a new model of close cooperation between Chinese and German high-tech companies."
Andreas Meier, president and CEO of the H.C. Starck Group
, added: "This joint venture is our largest project to date in China and the core of our growth strategy in Asia. I am pleased that we could win an experienced and reliable partner like JXTC for this project. We will primarily supply the products of our joint venture to the hardmetal manufacturers for the automotive and engineering industries as well as to suppliers for the mining and energy industry in China."
The companies say that the joint venture will contribute to preserving resources and creating sustainable development in the Chinese tungsten industry. The joint venture will also strengthen H.C. Starck's raw material supply chain.
Ganzhou, known as "the tungsten capital of the world," is one of the largest cities in the Province of Jiangxi, which has abundant, natural-tungsten deposits.