Fugu of Yulin Lays A Solid Foundation for Chinese Magnesium Industry

Fugu of Yulin Lays A Solid Foundation for Chinese Magnesium Industry

In recent years, the development of new magnesium based materials is becoming a bigger focus in the world. As the core area in Shaanxi where magnesium industry is developing fast, Fugu County of Yulin, Shaanxi has been always sticking to practicing new development concepts. Based on industrial basic advantages, aiming to expand downstream application, and utilizing technical innovation as breakthrough, Fugu County actively explores a new path and goes all out to build new industrial heights of “China Magnesium Valley, World Magnesium Capital” on “Silk Roads”. There is not only stable growth in Fugu magnesium industry but also significant progress in quality. Magnesium industry has already grown into a “chain leader” industry in the county as a connecting link between raw coal and chemical industry, and as an energy carrier. The industry is showing good momentum of development.

Fugu County is putting forth efforts to seize three “crucial ends” in the development of magnesium industry:

Firstly, to seize front-end basis, and to well play the role of “leader” in magnesium industry. Fugu County gives full play to its basic advantage of “Fugu magnesium” and its irreplaceable comparative advantage, and is making ongoing efforts in policy support, environment guarantee and talent service, to continuously consolidate the leading position of “Fugu magnesium” in global magnesium industry chain, go all out to guarantee production, scale and supply, vigorously release quality capacity, fully guarantee rigid demands for magnesium from home and abroad, and spare no efforts in ensuring steady development of our magnesium industry. Always upholding the belief of “growing into a leader in industry development”, Fugu County carries out intensive study in the advantages of low-cost and standardized “Fugu magnesium”industry development. Fugu County systematically reviews achievements, actively constructs and improves magnesium industry quality evaluation and standard system, and actively participates in the preparation of the standards for magnesium-smelting-oriented low rank coal high-temperature pyrolysis gas and by-product clean carbon. The County also successfully registered the trademark of “Fugu magnesium”, which indicates its leading and demonstration role in standardized magnesium industry development. Currently, all of Fugu County’s 34 magnesium companies are able to produce national-standard No. 95 raw magnesium. Magnesium production of Fugu County is growing steadily. It is planned that by the end of “14th Five-Year Plan”, magnesium production all across the country will achieve 1 million tons, and the County’s ability to support domestic and overseas magnesium industry will be further consolidated.

Secondly, to stabilize middle-end market and to well play the role of “maintainer” in magnesium market. Fugu County is giving full play to its role of market orientation by working with Yulin Energy Group and Shaanxi Financial Holding Group to establish Shaanxi Yulin Magnesium Group that takes import and export trade as the breakthrough point to prepare the construction of national magnesium trading center and 100000-ton-grade magnesium warehousing and logistics center. Through government guidance, market regulation and enterprise alliance, the County initiates unified purchasing, unified warehousing and unified selling of magnesium products, and directly interfaces end clients, and succeeded in stabilizing magnesium price within a reasonable range, fully consolidating right of speech and right of pricing of “Fugu magnesium”, and maintaining a steady and well-organized market environment. In 2021, magnesium production of Fugu County achieved 448900 tons, with annual average price of RMB 25000/ton, albeit Covid-19 pandemic, dual energy control, and environment protection policies. This practically safeguards stable production and reasonable profit for companies, and guarantees stability for raw magnesium industry in the whole country.

Thirdly, to extend end chain and well play the role of “facilitator” for magnesium industry development. Following the requirements from Shaanxi Provincial Party Committee and Government to build Shaanxi into an important magnesium alloy industry base in the world, Fugu County goes all out to build a world-class magnesium alloy industry park, centering on the concept of “industry chain deploys innovation chain, and innovation chain deploys industry chain”. Fugu County vigorously implements innovation-driven strategy, sticks to problem orientation and target orientation, makes efforts in supply side and demand side, works with Magnesium Branch of China Non-ferrous Metals Industry Association to co-establish magnesium R&D center, and works with Xi’an Jiaotong University to co-establish Western China Science and Technology Innovation Port Fugu Feidi Science and Innovation Center. The County is also dedicated to establishing high-end talent pool and gathering sci-tech innovation resources to accelerate the development of magnesium and magnesium alloy products and promote local transformation of raw magnesium. The Country takes downstream industries as breakthrough point, including electronic products, wheel hubs and building templates, to actively interface end clients like Shaanxi Automobile Group to facilitate the implementation of a batch of projects that will consolidate the chain, supplement the chain and extend the chain. As of now, some projects have been well implemented: magnesium alloy safety helmet pressure casting production line was put into operation, 3N5A high-purity magnesium project from Xi’an Jiaotong University and Taida Group was put into pilot production, AZ90 magnesium alloy realized quantity production, the technology to utilize residual heat of red residue was introduced from LTU, green smelting of high-quality magnesium was introduced from Zhengzhou University, vertical reduction was introduced from Nanjing Yunhai. The fresh current of leading technologies are watering Fugu magnesium industry, which lays a solid technical foundation for the construction of a world-class magnesium and magnesium alloy industry base.

In the face of new era and new requirements, Fugu County is earnestly following the deployments of Shaanxi Province and Yulin Municipal Government, to seize the opportunity that magnesium and magnesium alloy industry is rising globally. Based on current industrial basic advantages, Fugu County is actively strengthening weakness and practically making efforts in three aspects.

Firstly, to make efforts in total production and in building new industry cluster. Under the strong guidance of government and planning and based on the advantages in magnesium industry development, Fugu County has formulated policies and measures to improve and support magnesium industry and to promote the implementation of quality magnesium capacity. By giving full play to the role of Yulin Magnesium Group as a leading player, and relying on magnesium warehousing and logistics center, Yulin makes intensive efforts in magnesium exporting business. With the support of “Belt and Road Initiative”, Yulin carries out direct purchasing and direct selling, representative warehousing and representative selling for “Fugu Magnesium”, instead of middleman business, to transform raw magnesium trade market inherent pattern, and continuously improve international popularity and competitiveness of Fugu magnesium products. In the meantime, Fugu sticks to the concept of opening and sharing and mutual benefit, earnestly facilitates “dual investment attraction and dual introduction”, releases investment encouraging policies for magnesium and magnesium alloy industry, actively introduces downstream company investment including equipment manufacturing, rail traffic and electronic products, makes intensive efforts in downstream chain in magnesium and magnesium alloy industry, and goes all out to construct brand new magnesium and magnesium alloy industry system.

Secondly, to make efforts in optimizing industrial increment and construct new industry system. Yulin will strive to incorporate Fugu into the center of magnesium and magnesium alloy industry development in Shaanxi, considering the leading position, circular advantage and cluster effect of Fugu magnesium industry, especially the natural endowment of bauxite resources and advantages of raw magnesium transforming into magnesium alloy locally. Yulin upholds the principle of going smart, going green and going high-end, and makes intensive deployments in high-end projects including magnesium alloy, pressure casting and wheel hubs, in the hope of growing into a town characterized by four dimensions, i.e. production, urbanization, people, culture.

Fugu will gather quality resources within Shaanxi Province, and rely on the model of government organizing and private companies participating, to explore how to construct a “benchmarking” company in magnesium and magnesium alloy full industry chain that plays a leading role, boasts an intact chain, and possesses comprehensive product lines. This Company will gradually grow into an industrial benchmarking company that covers full industry chain and is world famous, incorporating research and development, production, trade, deep magnesium alloy processing and training of professional talents. Yulin aims to set a good example and lead high-quality magnesium industry development.

Thirdly, to make efforts in product quality and build new heights in the industry. In the way of government purchasing technologies, achievements and services, Fugu County accelerates the construction of Western China Science and Technology Innovation Port Fugu Feidi Science and Innovation Center and China Magnesium Association magnesium R&D Center, strengthens the cooperation with scientific research institutions within and outside of Shaanxi Province, hires domestic and overseas top experts in magnesium industry to organize the development of “expert pool” and “think tank” in magnesium industry, makes great efforts in developing green magnesium smelting and high purity magnesium products, solves common technical challenges such as the construction of magnesium smelting standard system, magnesium alloy material development, research and application of extrusion and forging technologies of high-end magnesium alloy section bars, magnesium smelting by silicothermic method, residue reduction by solidification method, comprehensive magnesium residue utilization, and hydrogen storage, and other problems in new magnesium and magnesium alloy industry. Fugu County aims to build Feidi Sci-Tech Innovation Center into a new height of technical innovation, achievement transformation, and talent cultivation in magnesium industry, and promote the formation of development system covering basic research, application research, and product development in magnesium and magnesium alloy industry, thus providing consolidated technical support for high-quality development of magnesium industry.

At present, Fugu County is sparing no efforts to build a world-class magnesium and magnesium alloy industrial base characterized by comprehensive product lines and intact chain. Under the new development pattern of domestic and foreign markets boosting each other, with the domestic market as the mainstay, Fugu is actively integrated into the big picture of global and domestic magnesium development, with an open mind and tolerant mentality. Relying on the solid foundation that has been well laid for years, Fugu County is constructing a super runway for magnesium industry through cooperation, actively building a community of interests, and earnestly marching the industrial new height of “Chinese Magnesium Valley, World Magnesium Capital”, thus making great contributions to magnesium industry in Shaanxi and laying foundation for Chinese magnesium industry.