Construction work on a rare earth polishing powder plant began recently in Baotou, in North China’s Inner Mongolia autonomous region, according to local media reports.

Rare earth cerium oxide polishing powder is mainly used in fine polishing, such as plate glass, glass for mobile phones and wrist watches and in other areas.

The plant, funded by Baotou Mengjia Technology Co, will cost 15 million yuan ($2.18 million).

It will be located in Baotou’s deep metal processing zone, covering an area of 3.33 hectares.

The construction work is expected to be completed by the end of this year.

It is estimated that the plant’s annual output value will be 400 million yuan after the project’s completion and the profit and tax will be 40 million yuan.