Late in 1991, Arnold Engineering announced the consolida on of all of its Hard Ferrite permanent magnet produc on into its Sevierville, Tennessee plant. Associated with this consolida on was a significant capital investment in the Sevierville Plant for addi onal sintering capacity and advanced grinding equipment. In May of 1992, Arnold Engineering announced the receipt of a U.S. Patent covering the unique passiva on technology related to Neodymium-Iron-Boron powder and magnets. The technology was a result of an ongoing basic research and development program ini ated by Arnold and SPS Technologies in 1989. The new process (Aquanide®) significantly enhances the corrosion resistance of NdFeB powder and magnets. In December, 1992, Arnold Engineering acquired all of the assets of Minnesota Mining and Manufacturing Company's (3M) bonded magnet business in Norfolk, Nebraska. Sales of bonded ferrite and rare earth magnets are primarily to the automo ve, business equipment and medical industries. About one- quarter of Norfolk's sales are to export customers. The Norfolk facility, now referred to as Flexmag West, consisted of an 84,000 square foot plant on a 175-acre site with a workforce of approximately 65 employees. Manufacturing processes include the produc on of ferrite powder, compounding, flexible magnet processing, injec on molding, coa ng, magne zing, lamina ng and tool making. P 7 Plastiform Plant Flexmag West Sevierville Plant