Construction is due to start on a new Permanent Magnet Motor Industrial Park in Xiamen's Jimei district in October, according to an announcement recently made at its signing ceremony between Xiamen Tungsten Co and the local government.

With a total investment of 10 billion yuan ($1.46 billion), the first phase of the park is expected to open by the end of the year. The whole park, covering 1,000 mu (66.7 hectares), will be completed within a decade.

After the whole park is put into operation, 700 billion yuan is expected to be generated by the park each year.

Xiamen Tungsten Co, the largest supplier and exporter of tungsten powder in China, is using its leverage in producing permanent magnetic material to establish the industrial park.

It also plans to cooperate with Xiamen King Long United Automotive Industry Co and other leading vehicle manufacturers at home and abroad to complete the related industry chain-cluster.

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, according to the head of the Xiamen company.

The New material industrial cluster is one of the 100 billion yuan worth of industrial clusters the coastal Chinese city plans to build. Two related research institutes have been established in Jimei, which lays a solid foundation for the further development of the district's new material industry.