DEERFIELD BEACH, Fla.
March 26, 2012
/PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (Nasdaq: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in
and the Americas and provides cross border corporate advisory services, announced today that Mr.
, Managing Director of its wholly owned subsidiary, International Magnesium Group, Inc. ("IMG"), has been invited to attend and speak at the Global Automotive Lightweight Materials 2012 Conference from
-26th in London. IMG is the global marketing arm for CD International's Magnesium segment which is among the world's largest producers and distributors of pure magnesium products.
Mr. Markin will be part of a panel of expert speakers that includes representatives from major automotive manufacturers such as GM, Ford, BMW, Audi, Toyota, Nissan, Tata Motors, Jaguar Land Rover, Fiat, McLaren, and Bugatti as well as research and development institutions and automotive sales and marketing industry experts. The focus of this conference is to tackle the challenges of sourcing, integrating, and manufacturing light weight materials for commercially viable mass market application to deliver improved fuel economy. As mandates for lower fuel consumption and stringent emissions standards are in place in the US and the EU, this conference serves as a meeting ground for OEMs to address the challenges and to find solutions to accelerate the usage of lightweight materials in vehicles in order to meet the increasingly stringent fuel savings and emissions targets. For more information or to register for the event, please visit:
IMG recognizes the challenges facing automotive manufacturers especially in the procurement of magnesium and plans to take this opportunity to forge long term relationships with automakers by introducing an aluminum-indexed long term pricing approach for our magnesium products. With the current absence of a futures market for magnesium, end-users, especially automakers, have difficulty in incorporating substantial quantities of magnesium into their long term vehicle designs due to the lack of pricing visibility. However, by indexing magnesium to the LME Aluminum cash settlement price, automakers will be able to hedge appropriately making it easier for them to calculate the costs in a predictable manner. Magnesium is not only 33% lighter than aluminum, but it has similar if not greater structural integrity than aluminum and therefore, as long as it is not priced at more than a 50% premium relative to aluminum, then it is highly competitive. IMG's pricing strategy will set the magnesium price in the range of 1.33 to 1.5 of aluminum costs on a long term basis in order to provide for the potential of long term pricing predictability for larger end users which should ultimately lead to increased overall demand in the industry.