Construction is due to start on a new Permanent Magnet Motor Industrial Park in Xiamen's Jimei district in October, according to an announcement made at its signing ceremony on June 27.

With a total investment of 10 billion yuan ($1.5 billion), the first phase of the park is expected to open by the end of the year. The whole park, covering an area of 66.7 hectares, will be completed within a decade.

Xiamen Tungsten Co, the park's investor and the largest supplier and exporter of tungsten powder in China, is using its leverage in producing permanent magnetic material to establish the industrial park and also to seek cooperation with leading manufacturing companies at home and abroad to boost the park's development.

The rare earth-made permanent magnet motors are small and lightweight and capable of saving 30 to 40 percent more energy than the traditional ones, which are mainly used for servomechanism, new-energy vehicles, and intelligent equipment.

New material industrial cluster is one of the 100 billion yuan worth of industrial clusters the coastal Chinese city has plans to build. Additionally, 23 projects involving biaxially oriented stretch film and other new materials are also under construction.