BASF and HSCC Explore PA6 Joint Venture

In addition, both companies are evaluating the possible inclusion of their global extrusion operations outside North America in the joint venture. The downstream technical plastics businesses of BASF and HSCC are not part of this evaluation.

Headquartered in Fuzhou, Fujian Province, China, HSCC is a multinational company that combines the fields of chemicals, chemical fibers, and innovative new materials. The group is one of the leading manufacturers of caprolactam and operates 31 production sites in China and Europe. It has a fully integrated value chain ranging from basic chemical feedstocks to high-quality new materials.

“The European chemical industry must become more competitive. This requires supportive industrial policy as well as consolidation measures to create stronger companies that can successfully hold their own in global competition. BASF intends to play an active role in shaping this development,” says Markus Kamieth, Chairman of the Board of Executive Directors at BASF. “Together with HSCC, we are exploring opportunities to strengthen our polyamide-6 businesses by combining the most competitive facilities, the best technologies, and the best commercial expertise from both companies. Combining selected, complementary facilities into a cost-efficient structure would strengthen our competitive position through improved capacity utilization and lower costs, thereby enabling us to offer attractive solutions to our customers over the long term.”

Project teams from both companies have been established and are now moving forward with the evaluation of the potential collaboration.

As a manufacturer of PA6 and precursors, BASF supplies numerous industries, including the packaging and textile sectors. With production facilities in Ludwigshafen, Germany; Antwerp, Belgium; Caojing, China; and Freeport, Texas, the company operates one of the world’s largest production networks for polyamides.

“BASF is a leading global chemical company with outstanding technological capabilities and a long industrial tradition. We look forward to exploring opportunities for collaboration with BASF to jointly take our polyamide 6 and precursor businesses to the next level. We are convinced that this collaboration could unlock strong synergies between both partners and offer customers more competitive products and solutions,” says Chen Zhong, President and CEO of HSCC.