During the first year of the H.C. Starck Global Tungsten Powders integration into Masan High-Tech Materials, the management team and employees together have made efforts to reach new achievements amidst the global business downturn caused by the COVID-19 pandemic.
On June 9, 2020, Masan High-Tech Materials (formerly known as Masan Resources) announced the completion of the acquisition of H.C. Starck Group GmbH’s tungsten business (HCS). HCS is a leading manufacturer of high-tech tungsten metal powders and carbides (midstream tungsten products). HCS has production centres in Europe, North America, and China serving customers across the globe.
The transaction was a strategic step in executing Masan High-Tech Materials’ vision to become the leading global vertically integrated high-tech industrial materials platform. The transaction enabled Masan High-Tech Materials to move from being a Vietnamese supplier of intermediate tungsten chemicals to the rest of the world to a leading global high-tech material partner of choice globally. Beyond building brand partnerships, the transaction also enhanced Vietnam’s competitiveness in the global tungsten market through ownership of a cutting-edge research, innovation, and technology platform.
After the HCS acquisition, Masan Resources changed its name to Masan High-Tech Materials. Post acquisition, the combined management teams of the newly integrated businesses developed a new global vision, mission, and values reflecting the global growth aspirations of the newly merged entity. To assist in the integration of the new business, the head of Strategy & Development and head of Operational Technology & Innovation were seconded to Germany to assist in the transition and identification of cross-business improvement initiatives. Various cross business functional exchanges, technology, operational and maintenance practices were also conducted via online workshops to deliver improved utilisation, lower cost, and increased production and quality through the sharing and development of global best practices.
Through implementation of new market service and product offerings, the market and customers have recognised the differentiated value the company brings in terms of sustainability and innovation solutions. Masan High-Tech Materials also commits to building customers’ trust, demonstrating value creation with clear actions as well as providing solutions through either cost leadership or product differentiation.
Integrating successfully with HCS, Masan High-Tech Materials has been able to grow its global market share in every market that it services, despite the challenges caused by the global COVID-19 pandemic.
In addition, a number of Processing Efficiency Improvement initiatives have been implemented to drive business performance. Specifically, the company has optimised its German operations to increase productivity by 5 per cent, debottlenecked of the China tungsten powders factory leading to a 10 per cent increase of capacity as well as cutting logistics and freight expenses. Overall, these improvements are expected to improve the company’s profitability by additional $6 million per annum.
Following the achievements after the first year of the integration, Masan High-Tech Materials continues to remain its core values such as keeping its people safe, optimising plant operation and meet the needs of the customers during the COVID-19 pandemic. Masan High-Tech Materials will thereby continuously mark its strong footprint in the high-tech material industry.