BASF SE and Highsun Holding Group (HSCC) are exploring a 50:50 joint venture combining their respective European Polyamide 6 (PA6) value-chain operations, as the companies look to strengthen competitiveness and unlock cost efficiencies in a challenging chemical industry landscape.

 

The two companies have signed a non-binding Memorandum of Understanding (MoU) to evaluate the proposed combination. They are also considering bringing their global extrusion activities outside North America into the joint venture.

 

However, the engineering plastics downstream businesses of both BASF and HSCC are excluded from the evaluation.

 

The move comes as Europe’s chemical industry faces mounting pressure to improve competitiveness, with consolidation emerging as a potential route to stronger operations and lower costs.

 

“The European chemical industry needs to become more competitive. It requires supportive industrial policies as well as consolidation to create stronger companies that are better positioned to compete successfully on a global scale. BASF intends to actively shape this development,” said Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE.

 

“Together with HSCC, we are exploring opportunities to strengthen our Polyamide 6 businesses by combining the most competitive assets, the best technologies and the best commercial expertise both companies have to offer. The combination of selected complementary assets in a cost-efficient setup would strengthen our competitive position through improved asset utilization and lower costs, supporting attractive long-term offerings for our customers.”

 

Project teams from both companies have been established to advance the assessment of the potential partnership. No final agreement has been announced, with the proposed joint venture still at the evaluation stage.

 

BASF is a leading producer of Polyamide 6 and its precursors, supplying industries including packaging and textiles. Its production network spans Ludwigshafen in Germany, Antwerp in Belgium, Caojing in China and Freeport in Texas, making it one of the largest polyamide production networks worldwide.

 

For HSCC, the proposed cooperation offers an opportunity to explore synergies with BASF across polyamide 6 and precursor operations, potentially strengthening the companies’ ability to compete on products, costs and customer solutions.

 

“BASF is a global leading chemical company with outstanding technological capabilities and deep industry heritage. We are looking forward to examining possible collaboration opportunities with BASF to jointly take our Polyamide 6 and precursor businesses to the next level. We believe this cooperation could unlock strong synergies between both parties and deliver more competitive products and solutions to customers,” said Chen Zhong, President and CEO of HSCC.