Masan High-Tech Materials Corporation announced a partnership with US-based tungsten supplier Elmet. — Photo courtesy of Masan

HCM CITY — Masan High-Tech Materials Corporation (MSR) announced a strategic partnership with The Elmet Group Co., a US-based supplier of tungsten alloys and strategic mineral products to major North American customers.

Elmet will acquire a 4.99 per cent stake in MSR from a wholly owned subsidiary of Masan Group, at an implied US$2.5 billion equity valuation.

Masan Group will remain MSR’s controlling shareholder with approximately 87.46 per cent ownership following the transaction.

This transaction is the first step in Masan Group’s strategy of building long-term partnerships between MSR and strategic customers that require secure supply of tungsten.

The commercial agreements take effect upon completion. The parties target to close within the first half of October.

The two companies entered multi-year agreements with committed volumes, with MSR supplying tungsten products and conversion services to Elmet from its integrated mining and refining platform in Việt Nam.

The agreements cement a commercial relationship of more than twelve years into a long-term contracted partnership, with committed volumes over eight years, providing MSR with recurring revenue and multi-year earnings visibility.

They will also collaborate to secure additional tungsten concentrate from international partner mines for processing in Việt Nam, serving growing global demand.

The agreements cover approximately 1,250 tonnes of WO₃-equivalent annually, representing approximately $1.5 billion in estimated aggregate gross revenue to MSR over the initial term at prevailing tungsten prices.

Prior to this, MSR announced the strengthening of its global strategic materials platform by adding a potential of 115 million tonnes of tungsten-polymetallic resources and expanding tungsten oxides production capacity to more than 8,000 tonnes of WO₃ per annum.

“The technologies defining this century, including artificial intelligence, semiconductors, and aerospace, cannot exist without tungsten. The world can count on one hand the places that produce and refine it at scale. MSR is one of them,” said Danny Le, chairman of Masan High-Tech Materials.

“Elmet has spent twelve years inside our supply chain. They know what we have built and what it would take to build again … This is the beginning, and we will unlock MSR’s full value for shareholders in Việt Nam and beyond.” — VNS