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| Neo Performance Materials |
Neo Performance Materials, a Canadian specialty materials producer, has finalized the sale of its rare metals facility in Quapaw, Oklahoma, marking a strategic shift to focus more intently on its core business activities.
Strategic Divestiture to Optimize Operations
Neo has sold its 80% equity interest in the Quapaw facility to Kevin Reading, the plant's general manager and co-founder, for $1.5 million in cash. This transaction is not just a transfer of ownership but includes a reciprocal supply agreement, which underscores the ongoing relationship between Neo and the Quapaw facility. Under the terms of the deal, Quapaw will continue to purchase gallium from Neo for the next seven years and will supply gallium scrap to Neo's recycling operations in Peterborough, Ontario.
Quapaw's Role in Gallium Production
The Quapaw plant is noted for its production of gallium trichloride, a critical component in the manufacturing of light-emitting diode (LED) lighting, lithium batteries, integrated circuit chips, and capacitors. This material plays a vital role in various high-tech applications, making the plant's output essential to the tech and electronics industries.
The sale is part of Neo's broader strategy to streamline its global operations and focus on enhancing the efficiency and profitability of its core business segments. This move is intended to reallocate resources and attention to areas with the highest strategic importance and growth potential.
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