BASF and HSCC explore 50:50 joint venture for European polyamide 6 value chain
- BASF and Highsun (HSCC) signed a non-binding Memorandum of Understanding to explore a 50:50 joint venture combining their European polyamide 6 value‑chain activities.
- The companies are also evaluating inclusion of their global extrusion activities outside North America in the potential joint venture.
- Engineering plastics downstream businesses are explicitly out of scope for the evaluation.
- BASF operates PA6 production assets in Ludwigshafen, Antwerp, Caojing and Freeport; HSCC operates 31 manufacturing centers and is a leading caprolactam producer.
Deal outline
BASF and Highsun Holding Group (HSCC) have signed a non-binding Memorandum of Understanding to explore combining their European activities across the polyamide 6 (PA6) value chain in a 50:50 joint venture. They are also assessing whether to include their global extrusion activities outside North America. Engineering plastics downstream businesses are not in scope of the evaluation.
Rationale
BASF says the move aims to strengthen competitiveness through consolidation, combining competitive assets, technologies and commercial expertise to improve asset utilization and lower costs. BASF’s chairman Markus Kamieth framed the initiative as part of an effort to create stronger companies better positioned to compete globally.
Assets and capabilities
BASF operates one of the largest PA6 production networks with assets in Ludwigshafen, Antwerp, Caojing and Freeport. HSCC, headquartered in Fuzhou, is a major caprolactam producer operating 31 manufacturing centers and a fully integrated value chain from basic chemical raw materials to higher‑end materials.
Next steps
Project teams from both companies have been established to advance the evaluation. HSCC’s CEO Chen Zhong said the cooperation could unlock synergies and deliver more competitive products and solutions to customers.
Source: BASF