Xiamen Tungsten adjusts investment in rare earth magnet project

Xiamen Tungsten (SSE: 600549) has announced a reduction in its investment for a project focused on producing high-performance rare earth magnets for energy-efficient motors. The investment has been adjusted from ¥638.5 million to ¥480.94 million. This change comes as the company adapts to evolving market conditions and takes advantage of government-supported industrial parks, opting to lease facilities rather than build its own. This strategy reduces the need for capital expenditure on factory construction and equipment. While maintaining the original production capacity, the company anticipates completing the project by the end of 2026. The board has already approved the investment adjustment, stating that the move is in line with the company’s long-term development goals. This streamlining of capital expenditure aligns with Xiamen Tungsten's broader strategy to focus on its core business and mitigate risks associated with currency fluctuations.