Masan High-Tech Materials successfully exits downstream business H.C. Starck

Masan High-Tech Materials (HNX-UpCOM: MSR, "MHT" or "Company") announced on December 18 the successful completion of its sale of 100 per cent of H.C. Starck Holding (Germany) GmbH (“H.C. Starck”, “HCS”) to Mitsubishi Materials Corporation (“MMC”) Group, as first reported in May 2024 (the “Transaction”).

As part of the transaction, MHT and HCS entered into a long-term, mutually beneficial agreement for the offtake of APT and tungsten oxide, ensuring a strong anchor for MHT’s order book. Masan also retains potential financial upside from Nyobolt, a British company specializing in fast-charging tungsten and niobium-based battery technology that is nearing scaled commercialization, as well as the future commercialization of black mass recycling technology developed by HCS.

Following the transaction, Masan Group will record a one-time after-tax profit gain. Proceeds from the transaction will reduce MHT’s debt balance to approximately $490 million from about $670 million pre-transaction. Concurrently, Masan Group’s net debt to EBITDA ratio is expected to be around 3.17x as of December 2024, in line with the group’s target of maintaining the ratio below 3.5x.

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

About Masan High-Tech Materials Corporation

Masan High-Tech Materials is a global leader in advanced tungsten materials for key industries, including electronics, chemicals, automotive, aviation, aerospace, energy, and pharmaceuticals. The company operates production facilities in Vietnam, Germany, Canada, and China, serving customers worldwide. As the largest manufacturer of midstream tungsten products outside China, Masan High-Tech Materials also manages two research and development centers in Germany and Vietnam. It operates the Nui Phao polymetallic mine and a state-of-the-art tungsten processing plant in Thai Nguyen province. The company is also a significant global producer of fluorite and bismuth.

About H.C. Starck Holding GmbH

H.C. Starck (HCS), a wholly owned subsidiary of Masan High-Tech Materials, is a world-leading manufacturer of high-quality tungsten powder tailored to individual customer needs. With a century of experience in tungsten processing, HCS combines innovative strength with technological expertise. Its decades of recycling experience and access to the world’s largest tungsten reserves outside China, owned by its parent group Masan High-Tech Materials, ensure a stable supply of conflict-free raw materials. H.C. Starck Tungsten Powders employs around 540 people across production sites in Germany, Canada, and China, with additional sales offices in the US and Japan. The company is headquartered at its largest production site in Goslar, Germany.

About Mitsubishi Materials Corporation
MMC Group is an integrated materials manufacturer that provides basic materials such as copper and non-ferrous metals. It also manufactures and sells mechanical parts and electronic components used in automobiles and home appliances, as well as the tools required for their production. Additionally, MMC Group is active in recycling and energy businesses.

Under the corporate philosophy “For People, Society, and the Earth,” MMC Group pursues the vision of “Circulating resources for a sustainable future” and the mission of “Creating a sustainable future (a prosperous, recycling-oriented, and decarbonized society).” Moving forward, MMC Group will continue to contribute to a richer society by developing unique materials and providing customized processing solutions.