Masan's subsidiary Nui Phao Mining Company will take over 51 per cent of the joint venture, while HC Starck will hold 49 per cent.—Photo vinacorp

HA NOI (Biz Hub)— Private equity firm Masan Group (MSN) announced yesterday it had reached a deal with technology metals manufacturer HC Starck to establish a joint venture for the production of value-added tungsten chemicals in Viet Nam.

Masan's subsidiary Nui Phao Mining Company will take over 51 per cent of the joint venture, while HC Starck will hold 49 per cent.

The joint venture will process all of Nui Phao 's tungsten concentrate into higher value tungsten chemicals. It will have an installed capacity of up to 10,000 tonnes of tungsten concentrate per annum.

HC Starck will operate the joint venture and has committed to buying a significant share of the production for its own internal use. The company will also support marketing of the remaining product.

Meanwhile, Nui Phao will be the tungsten concentrate supplier of the joint venture. The construction of a tungsten chemical plant for the operation was in progress, Masan said.

"The first stage of the tungsten chemical plant will start production next month, with further stages expected to be completed in 2014."

Dominic Heaton, CEO of Masan Resources, a subsidiary of Masan Group and the parent company of Nui Phao, commented: "With HC Starck's specialised know-how and technology, Masan Group is able to contribute to Viet Nam's objective of becoming a stronger manufacturer of value-added products."

The establishment of the joint venture and closing of the definitive agreements are subject to customary corporate and regulatory approvals. — VNS