Magnetics Business & Technology - July/August 2024 - 10

FEATURE ARTICLE
Korean Magnet Manufacturer Star Group Rises in Prominence
Spurred by the global growh of automakers Hyundai and Kia, and
now riding alongside Korean steel maker Posco International, Star
Group of Korea is rising in prominence as a leading magnet manufacturer
in Asia - aiming now to expand into North America. Star
and Posco announced recently they are seeking to jointly establish
a new magnet manufacturing operation in the U.S. that would be
a domestic supplier using only non-Chinese sources of rare earth
feedstock.
A patent-rich company with extensive know-how in producing permanent
magnets, Star Group Ind. Co., Ltd. (SGI) is recognized in
South Korea as the country's leading, perhaps only, rare earth magnet
producer, though it is not widely known outside Asia. This article
provides some background on the company and its plans, based on
information from its website and other sources.
Against China's dominance, Posco has teamed up with Star Group
to take charge of rare earth permanent magnet production at the
jointly held factory, while Posco with its global network is projected
to lead their sale and distribution in the U.S. The factory is planned
as a synergistic business partner with a new and expanding plant
of Posco's in Mexico for manufacturing motor cores. Posco Mobility
Solution, Posco International's drive motor core-manufacturing
subsidiary is building an extensive worldwide network of motor core
plants, including the large facility in Mexico.
The subsidiary has recently bagged large contracts from Hyundai
Motor Group, the South Korean-based parent company of Hyundai
Motor and Kia, to supply its drive motor cores. The permanent magnets
involved in the contracts will be sourced from the U.S., Australia
and Vietnam while avoiding the use of rare earths from China.
Texas, Tennessee and Arizona are floated as strong candidates as
sites of the joint venture factory because those states have either
rare earth mines or auto factory clusters.
Star Group is headed by Kong Koon-Seung, who makes this general
statement about the company: " Star Group Ind. Co., Ltd. will
always be a reliable partner with the best quality and technology for
customers through innovative perspective and continuous technology
development and will make it a gruntled workplace for company
10 Magnetics Business & Technology * July/August 2024
members to realize their ego. We will
move forward as a world-class company
that creates the future of rare
earth permanent magnet applications. "
Headquartered
in the city of Daegu,
located in southeastern South Korea
about 50 miles from the coast, Star
Group was founded in 1994. It also
operates a factory in Yeongcheong to
the north near Seoul to produce permanent
magnets for autos, information
technology devices and industrial
motors. It has a subsidiary plant in Shangqiu, China, and liaison
offices in Malaysia and USA. It has been a permanent magnet supplier
of Hyundai Motor Group for a decade. Star Group's operating
profit amounted to 11.4 billion won (about $8.5 million) in 2022 on
sales of 169.7 billion won (about $125 million), more than double
that of the previous year.
Star Group CEO Kong KoonSeung
Magnetic
products of Star Group
Star Group produces an extensive portfolio of permanent magnets
and related products including magnets for traction motors, voice
coil motor magnets and computer disk drives. A few examples are
shown here.
Traction-motor magnets
www.MagneticsMag.com
http://www.MagneticsMag.com
Magnetics Business & Technology - July/August 2024

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