Masan sells German tungsten subsidiary to Mitsubishi for $134M

By Dat Nguyen May 30, 2024 | 07:55 pm PT

H.C. Starck Holding GmbH's factory in Germany. Photo courtesy of Masan Group

A subsidiary of conglomerate Masan Group has signed a deal to sell a 100% stake in its wholly-owned German tungsten powder making subsidiary to Japan’s Mitsubishi for US$134.5 million.

Masan High-Tech Materials announced the sale of H.C. Starck Holding GmbH to Mitsubishi Materials Corporation in a press release Thursday.

H.C. Starck, which has production hubs in Germany, Canada and China with 540 employees, develops, produces and distributes high-performance tungsten powders which have a lot of technological applications.

But it will retain potential earnings from future commercialization of black mass recycling technology developed by H.C. Starck.

The money raised from the sale will be used to partially retire Masan High-Tech Materials’ debts.

"We will focus on rebuilding Masan High-Tech Materials into the lowest cost producer of tungsten to maximize cash flows," Danny Le, CEO of Masan Group and chairman of Masan High-Tech Materials, said.

"At the same time we will continue to explore strategic alternatives to transform Masan Group into a consumer pure play."