The proposed 50:50 venture would integrate selected European PA6 operations, with worldwide extrusion activities outside North America also under consideration.
BASF SE and China-based Highsun Holding Group (HSCC) have signed a non-binding memorandum of understanding to explore integrating their European polyamide 6 (PA6) value chain operations in a 50:50 joint venture. The companies are also analyzing whether to include their global extrusion activities outside North America.
The proposed venture would exclude both companies’ engineering plastics downstream businesses. Project teams have been established to evaluate the potential integration, however no final agreement has been declared.
BASF mention that the potential partnership could bring together selected complementary assets, technology and commercial capabilities to improve asset utilization and decrease costs. BASF CEO Markus Kamieth stated consolidation could support European chemical manufacturers reinforce their competitiveness amid challenging industry conditions.
BASF operates PA6 and precursor manufacturing assets in Ludwigshafen, Germany; Antwerp, Belgium; Caojing, China; and Freeport, Texas. HSCC, based in Fuzhou, China, manufactures caprolactam and operates 31 manufacturing facilities in China and Europe, as per the declaration. Caprolactam is a key precursor for PA6.
The companies have not disclosed which facilities or manufacturing capacities could be included in the potential venture, or offer a timeline for finishing their evaluation.
The discussions follow other current BASF capacity and investment developments. In September, the company said it was conducting an advanced feasibility study for a potential methylene diphenyl diisocyanate (MDI) manufacturing complex at its Dahej site in Gujarat, India. BASF has secured land for the venture, however a final investment decision stays subject to the study and required approvals.
