Masan High-Tech Materials reports record tungsten production
April 29, 2022
Masan High-Tech Materials (MHT), Ho Chi Minh City, Vietnam, announced that its total tungsten production increased a record 97% compared to 2020, with 26% of this production from recycled tungsten scraps and 74% from primary sources including MHT’s Nui Phao mine in Thai Nguyen. Net revenues were up 86% year on year, at VND 13,564 billion.
Tungsten revenues were significantly higher due to the consolidation of HC Starck Tungsten Powders and the higher APT price for FY2021 ($286/mtu) as compared to the same period last year ($222/mtu). EBITDA increased by 114% for 2021 at VND 3,070 billion. The company also reported that its forward order book is the strongest it has been in many years, which is positive for both sales volumes and prices.
2021 saw the results of the successful integration with the tungsten business platform of HC Starck operating in Germany, Canada and China when Masan High-Tech Materials carried out technology transfer, leveraging more than 100 years of experience of HC Starck and promoting global business restructuring with the goal of improving operational efficiency and expanding the business and product portfolio.
The HC Starck business is said to have contributed significantly to the overall MHT result with an EBITDA of VND 746 billion whilst the Vietnam-based businesses (Nui Phao Mining and Masan Tungsten Company) contributed VND 2,324 billion to the overall result. The company has stated these results vindicate its decision to acquire the HCS business in the early stages of the COVID-19 pandemic in 2020 and set MHT up well for the future.
MHT’s ongoing investment in innovation and development is also said to be delivering value with new customer-centric products specifically tailored for the electric mobility and Additive Manufacturing segments coming to the market. Beyond these new product ranges, the team have also developed new analytical equipment which is now in prototyping stage having been patented in late 2021.
In recycling, MHT has filed additional patent applications for a new recycling process for cobalt bearing sludges and battery black mass. This new process is expected to enable the recycling of various hard cutting tool sludges and battery black mass with a lower environmental footprint than current recycling processes. The company see this as a potential game changer for environmentally sustainable recycling of copper, cobalt, nickel, manganese, lithium, etc., from these materials.
Danny Le, MHT chairman, stated, “In the very near future, Masan High-Tech Materials will be more than a supplier of strategic high-tech materials, partnering with disruptive consumer technology platforms to create direct-to-consumer products where tungsten is a key element. Most importantly, we envision a circular platform where we can recycle these products to drive sustainability and productivity.”
In 2022, the company intends to continue to focus on recycling raw materials, implementing carbon neutrality initiatives and promoting the benefits of the circular economy. In the context of the global economic recovery after COVID-19, positive signals in the tungsten market and the shift from gasoline to electric vehicles, tungsten prices seem likely to go up in 2022. The company expects to achieve 2022 revenue of about VND 14,500-15,000 billion, pre-allocated net profit to shareholders is about VND 300 billion to 500 billion.
Towards building a long-term sustainable business for its people and the community, Masan High-Tech Materials stresses its commitment to ‘Growth Through Sustainability’, striving to affirm its position and brand in the domestic market and area by expanding its scope.
Craig Richard Bradshaw, CEO, concluded, “Instead of just supplying key materials to make smartphones, cars, planes, and submarines, Masan High-Tech Materials may one day create practical consumer products for these critical industries.”