BASF SE (Ludwigshafen, Germany) and Highsun Holding Group Ltd. (HSCC; Fuzhou, China) have signed a non-binding Memorandum of Understanding to explore the combination of their respective European activities across the polyamide 6 (PA6) value chain in a 50:50 joint venture. Additionally, both companies are evaluating the inclusion of their global extrusion activities outside of North America in the joint venture. The engineering plastics downstream businesses of BASF and HSCC are not in scope of the evaluation.
“The European chemical industry needs to become more competitive. It requires supportive industrial policies as well as consolidation to create stronger companies that are better positioned to compete successfully on a global scale. BASF intends to actively shape this development,” said Dr. Markus Kamieth, chairman of the board of executive directors of BASF. “Together with HSCC, we are exploring opportunities to strengthen our polyamide 6 businesses by combining the most competitive assets, the best technologies and the best commercial expertise both companies have to offer. The combination of selected complementary assets in a cost-efficient setup would strengthen our competitive position through improved asset utilization and lower costs, supporting attractive long-term offerings for our customers.”
Project teams from both companies have been established and will advance the evaluation of the potential cooperation.
As a leading producer of polyamide 6 and precursors, BASF is serving multiple industries including packaging and textiles. With production assets in Ludwigshafen, Germany; Antwerp, Belgium; Caojing, China; and Freeport, Texas, the company operates one of the largest production networks for polyamides worldwide.
“BASF is a global leading chemical company with outstanding technological capabilities and deep industry heritage. We are looking forward to examining possible collaboration opportunities with BASF to jointly take our polyamide 6 and precursor businesses to the next level. We believe this cooperation could unlock strong synergies between both parties and deliver more competitive products and solutions to customers,” said Chen Zhong, president and CEO of HSCC.
Headquartered in Fuzhou, Fujian Province, China, HSCC is a multinational enterprise integrating chemicals, chemical fibers and advanced new materials. The group is recognized as a leading producer of caprolactam and operates 31 manufacturing centers at different locations in China as well as in Europe, building a fully integrated value chain from basic chemical raw materials to high-end new materials.