HO CHI MINH CITY, Vietnam and MUNICH, July 29, 2013 /CNW/ - 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
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
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
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
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
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.
SOURCE: H.C. Starck
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