ULVAC, Inc. expects a threefold increase in orders for its continuous vacuum melting furnaces used in rare-earth magnet production, driven by demand from Europe and North America. In response, the company will establish a new production site in Japan, complementing its existing facility in China, to diversify its supply chain.
Rare-earth magnets are critical components in various industries, including electric vehicles, wind power, and data centers. The global demand for these magnets is anticipated to grow due to the push for decarbonization and advancements in artificial intelligence. As a result, near-shoring production closer to end markets is gaining momentum, especially in Europe and North America, to reduce dependency on Chinese supply chains.
ULVAC has been manufacturing vacuum melting furnaces through its Chinese subsidiary, serving the market for years. However, to meet the increasing demand from new magnet manufacturers in Europe and North America, the company is establishing a production system in Japan. The new facility is expected to start operations in September 2026, with a production capacity of up to 12 units per year.
With nearly 70 years of expertise in vacuum melting and deposition equipment, ULVAC is one of the few manufacturers offering a comprehensive lineup for key vacuum processes in rare-earth magnet manufacturing. The company holds a market share exceeding 70% in its continuous furnace product lines for major processes like melting, sintering, and aging. The continuous vacuum melting furnace, a critical component of the magnet production process, significantly influences the final magnet performance.
ULVAC has delivered over 400 units of these furnaces, earning recognition from leading global magnet manufacturers for its advanced production engineering capabilities. As the rare-earth magnet market evolves with new entrants, customer needs are shifting from standalone equipment supply to comprehensive mass-production line support.
To address this shift, ULVAC plans to strengthen its stable supply of manufacturing equipment and expand its services to include total optimization of mass-production lines. The company aims to position itself as an integrated engineering firm specializing in magnet production technologies.
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