Masan High-Tech Materials announces strategic alliance with Mitsubishi Materials

May 30, 2024 - 15:05
Masan High-Tech Materials Corporation (MHT) has announced a strategic alliance with Mitsubishi Materials Corporation (MMC) in the tungsten industry.
Danny Le, CEO of Masan and chairman of MHT, speaks at the recent 2024 annual general meeting of shareholders. — Photo courtesy of Masan

HCM CITY — Masan High-Tech Materials Corporation (MHT) has announced a strategic alliance with Mitsubishi Materials Corporation (MMC) in the tungsten industry.

Under the deal, MMC will acquire 100 per cent of H.C Starck (HCS) from MHT for a total of US$134.5 million.

The agreement also includes a long-term contract for the purchase of ammonium paratungstate and tungsten oxide between the two parties.

The proceeds from the sale of HCS will be used by Masan to reduce its debt and achieve its goal of reducing the net debt to EBITDA ratio to below 3.5.

The deal is expected to bring significant financial benefits to Masan, with an estimated one-time profit of around $40 million and a long-term increase in net profit after tax of $20-30 million.

In addition, Masan will retain ownership in Nyobolt, a British company specialising in fast-charging tungsten and niobium-based battery technology.

Danny Le, CEO of Masan and chairman of MHT, said: “Our goal is to position MHT as a cost-effective tungsten producer, maximise cash flows, and explore strategic opportunities to transition Masan into a consumer-centric company. Less is more.

“I am proud to see our strategic vision coming to fruition. Forming an alliance with Mitsubishi Materials will accelerate our journey to becoming a global high-tech industrial materials provider.

“Our customers will benefit greatly from this partnership, enhancing our ability to offer quality and innovative products and solutions.

The acquisition of HCS by MMC aligns with its focus on the mid- and down-stream tungsten value chains and provides access to production facilities in Europe, North America and China, and a robust tungsten scrap recycling platform.

Kazuo Ohara, president of MMC’s metalworking solutions business, said: “The transaction represents a milestone in the execution of our strategy to further grow in the tungsten industry and contribute to a recycling-oriented society.”

The deal is expected to be finalised by the end of 2024, pending customary approvals, with the Singapore branch of UBS AG serving as the financial advisor to MHT.

The strategic alliance is expected to establish a comprehensive global tungsten partnership and drive sustainable industry growth.

The processing plant of H.C. Starck in Goslar, Germany. — Photo courtesy of Masan

Masan High-Tech Materials is a major player in providing advanced tungsten materials globally.

With operations in Việt Nam, Germany, Canada, and China, the company stands out as a leading manufacturer of mid-stream tungsten products.

It manages the Núi Pháo polymetallic mine and tungsten processing plant in Thái Nguyên Province.

HCS, a subsidiary of Masan High-Tech Materials, is the world’s leading manufacturer of high-quality tungsten powder tailored to individual customer needs, with a focus on recycling and sustainable sourcing.

Mitsubishi Materials Corporation is an integrated materials manufacturer that seeks to promote resource circulation for a recycling-focused and decarbonised society. — VNS