BASF and HSCC explore potential joint venture across PA6 value chain
The European chemical industry needs to become more competitive and requires supportive industrial policies as well as consolidation to create stronger companies that are better positioned to compete successfully on a global scale, according to Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE.
Against this backdrop, German global chemicals company BASF, which said it intends to actively shape this development, has signed a non-binding Memorandum of Understanding (MOU) with Highsun Holding Group (HSCC), a Chinese multinational advanced manufacturing enterprise and the world's largest producer of caprolactam (CPL), 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 JV. The engineering plastics downstream businesses of BASF and HSCC are not in scope of the evaluation.
Project teams from both companies have been established and will advance the evaluation of the potential cooperation.
As a leading producer of PA6 and precursors, BASF serves 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 PA worldwide.
Fuzhou, Fujian-headquartered HSCC operates 31 manufacturing centres 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.
Chen Zhong, President and CEO of HSCC, stressed that the cooperation could unlock strong synergies between both parties and deliver more competitive products and solutions to customers.
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