Masan Group and H.C. Starck to Establish Tungsten Chemical Joint Venture
HO CHI MINH CITY, Vietnam and MUNICH, July 29, 2013 /PRNewswire/ –
H.C. Starck, a leading worldwide manufacturer of technology metals and one of the
biggest companies in the global tungsten industry, and Nui Phao Mining Company (“Nui
Phao”), a subsidiary of one of Vietnam’s largest private sector business groups, Masan
Group Corporation (HOSE: MSN, “Masan Group”), have announced the signing of definitive
agreements to establish a joint venture for the production of value-added tungsten
chemicals in Vietnam.
Nui Phao and H.C. Starck will own 51% and 49% respectively of the joint venture, which
will process all of Nui Phao’s tungsten concentrate into higher value-add tungsten
chemicals, including ammonium paratungstate (APT) and blue tungsten oxide (BTO). The joint
venture company will have an installed capacity of 6,500 tons tungsten trioxide per annum.
H.C. Starck will manage the joint venture and has committed to buy a significant share of
the production for its own internal use. The company will also support marketing of the
remaining product through the joint venture.
Andreas Meier, President and CEO of H.C. Starck said, “Masan has developed a
world-class mining operation and the Nui Phao mine will be a stable source of material for
the joint venture. For H.C. Starck this joint venture strengthens our leading position as
a global tungsten producer and increases our manufacturing footprint in Asia. Based on the
secured supply of tungsten concentrate and our recycling capabilities, we can provide our
customers long-term supply security independent from regulatory restrictions and we expect
less price volatility for the mineral.”
H.C. Starck has significant experience in the tungsten processing business, which is a
niche and technologically intensive industry, and will therefore be responsible for the
industrial management of the joint venture.
Dominic Heaton, CEO of Masan Resources, a subsidiary of Masan Group and the parent
company of Nui Phao, commented, “H.C Starck has world-class expertise in the processing of
tungsten chemicals and oxides. With H.C. Starck’s specialized know-how and technology,
Masan Group is able to contribute to Vietnam’s objective of becoming more of a
manufacturer of value-added products.”
Madhur Maini, CEO of Masan Group, said: “H.C Starck is the technology leader in the
production of several high-technology metals. The partnership with H.C. Starck, one of the
world’s largest tungsten players, will help Masan capture more of the tungsten value chain
and is a testament to the quality of Nui Phao’s tungsten deposit and processing plant.”
H.C. Starck is a leading global manufacturer for technology metals. Besides being one
of the largest global tungsten companies in the world, it also holds top market positions
with its tantalum, molybdenum, niobium, and rhenium products. All of these metals require
advanced technology and know-how to process.
Nui Phao, the tungsten concentrate supplier of the joint venture, has developed one of
the largest known tungsten deposits outside of China with an expected mine life of more
than 15 years. The construction of the tungsten chemical plant that will be part of the
joint venture is in progress. The first stage of the tungsten chemical plant will start
production next month, with further stages expected to be completed in 2014.
Tungsten is one of the hardest metals and has the highest melting point. As a
strategic resource, it is used in a variety of applications requiring high strength. APT
and BTO are intermediary chemicals used for the production of high speed cutting and
drilling tools which are in high demand from growing industries such as mining and
mechanical engineering, medical technology, and the automotive and energy industries. APT
is also used for catalyst production in the chemical industry. The European Union
identified tungsten as one of the critical raw materials that have high strategic value
and yet for which there are only limited natural resources.
The establishment of the joint venture and closing of the definitive agreements are
subject to customary corporate and regulatory approvals.
This press release contains forward-looking statements regarding Masan Group’s
expectation, intentions or strategies that may involve risks and uncertainties. These
forward-looking statements, including Masan Group’s expectations, involve known and
unknown risks, uncertainties and other factors, some of which are beyond Masan Group’s
control, which may cause Masan Group’s actual results of operations, financial condition,
performance or achievements to be materially different from those expressed or implied by
the forward-looking statements. You should not rely upon forward-looking statements as
predictions, future events or promises of future performance.
MASAN CONTACTS: S.Venkatesh T: +848-6256-3862 / +65-9722-1770 E: email@example.com H.C. STARCK CONTACTS: Ulrike Reich T: +49-89-500-942-155 E: firstname.lastname@example.org
SOURCE H.C. Starck