The Nui Phao plant of the Nui Phao – H.C.Starck Tungsten Chemicals Manufacturing LLC. The Vietnamese company is now fully owned by the Nui Phao Mining Company, a subsidiary of one of the world’s largest tungsten producers, Masan Resources Corporation. — (Source: Courtesy of Massan)HCM City (VNS/VNA) - Nui Phao Mining Company Ltd has acquired Germany-based H.C.StarckGmBH’s 49 percent stake in Nui Phao – H.C.Starck Tungsten ChemicalsManufacturing LLC (NHTCM) for 29.1 million USD.
Nui Phao is a fully-owned subsidiary of one of the world’s largest integratedindustrial tungsten mineral and chemical producers, Vietnam-based MasanResources Corporation, which fully funded the deal.
NHTCM, now a 100 percent subsidiary of Masan, was establishedin 2013 and is a leading producer and global supplier of tungsten chemicalslike ammonium paratungstate (APT), blue tungsten oxide (BTO) and yellowtungsten oxide (YTO).
NHTCM processes tungsten concentrate into higher value-added products.
It is a globally recognised brand and supplier to many high-tech industrialmanufacturers.
Craig Bradshaw, CEO of Masan Resources Corporation, said: “This acquisition isa critical step in delivering our vision of becoming a fully integrateddownstream tungsten chemicals business of global scale and influence.
“It consolidates our ownership of advanced processing technologies.
“Today we are the number one primary TC producer ex-China, with 36 percent ofthe non-China market, and we have clear operational plans to become the largestproducer and supplier of tungsten chemicals globally.”
Dr Karlheinz Reichert, CEO of H.C.Starck GmBH’s tungsten division, said: “Thepartnership resulted in a robust two-way exchange of business benefits,technology and culture and we will continue our relationship with NPMC as acustomer.
Danny Le, head of strategy and development at Masan Group, said: “From afinancial perspective, this transaction will enable us to consolidate our cashposition by eliminating minority interests.
“This provides MSR better flexibility to pay debts or declare cash dividends toshareholders in the medium term.
“The acquisition is also consistent with the five-year strategy that we haveoutlined for MSR: developing an integrated business model to generate strongcash flows and profits through commodity cycles.
“In addition, this will better position Masan Resources for strategicpartnerships in the near future and pursue an international IPO to unlockshareholder value.”
Plans are in place to integrate NHTCM with Nui Phao Mining’s operations andcost efficiencies are expected to be realised from the first quarter of 2019onwards.-VNS/VNA
VNA
