Masan High-Tech Materials (MHT) announced on Wednesday the successful closing of the sale of 100 percent of H.C. Starck Holding (Germany) GmbH (HCS) to Mitsubishi Materials Corporation (MMC) Group.

This transaction was as first reported in May 2024.

As part of the transaction, MHT and HCS entered into a long-term, win-win APT and tungsten oxide offtake agreement, providing a strong anchor for MHT’s order book, MHT said in a press release on Wednesday.

Masan also retains potential monetary upside from Nyobolt, a British fast-charging tungsten and niobium-based battery technology company nearing scaled commercialization, as well as future commercialization of black mass recycling technology developed by HCS.

Upon closing of the transaction, Masan Group will report a one-time after-tax profit gain, whilst transaction proceeds will be used to reduce MHT’s debt balance to approximately US$490 million from approximately $670 million pre-transaction.

At the same time, the group is expected to report Net Debt to EBITDA of approximately 3.17x as of December 2024, consistent with its target of maintaining the ratio below 3.5x.

Danny Le, CEO of Masan Group and Chairman of MHT, commented: “The sale of HCS is the first step in realigning our business platform to focus where we can create outsized shareholder value.

“At the same time, the transaction creates a healthier MHT balance sheet to ensure we remain the lowest cost producer of tungsten to take advantage of the macro and micro tailwinds – increasing demand for tungsten applications driven by improving underlying global economy.”

Masan High-Tech Materials, a global leader in advanced tungsten materials, serves key industries like electronics, automotive, aerospace, energy, and pharmaceuticals.

With production facilities in Vietnam, Germany, Canada, and China, it is the largest mid-stream tungsten producer outside China.

The company operates the Nui Phao polymetallic mine and a tungsten processing plant in Thai Nguyen Province, northern Vietnam and has R&D centers in Germany and Vietnam.

It is also a major producer of fluorite and bismuth.

H.C. Starck Tungsten Powders, a subsidiary of Masan High-Tech Materials, is a global leader in custom tungsten powder manufacturing.

With over a century of expertise and access to the largest tungsten reserves outside China, the firm ensures a stable, conflict-free supply.  

MMC Group, an ‘integrated materials manufacturer,’ supplies essential materials like copper and non-ferrous metals, along with mechanical parts, electronic components, and tools for industries such as automotive and home appliances.

The group also engages in recycling and energy businesses.

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