BASF and Hengshen Group to Explore Polyamide 6 Joint Venture in Europe

BASF SE (Ludwigshafen, Germany) and Haisun Holding Group Co., Ltd. (HSCC; Fuzhou, China) have signed a non-binding memorandum of understanding to explore combining their respective European activities in the polyamide 6 (PA6) value chain through a 50:50 joint venture. Additionally, both companies are evaluating the inclusion of their global extrusion activities, excluding those in North America, into the joint venture. The downstream engineering plastics businesses of BASF and HSCC are not within the scope of this evaluation.

“The European chemical industry needs to become more competitive. It requires supportive industrial policies and consolidation to create stronger companies that can compete more successfully on a global scale. BASF intends to actively shape this development,” said Dr. Markus Kamieth, Chairman of the Executive Board of BASF. “Together with HSCC, we are exploring opportunities to strengthen our polyamide 6 business by combining the most competitive assets, best technologies, and strongest commercial expertise from both companies. By integrating selected complementary assets in a cost-efficient setup, we will enhance our competitive position through improved asset utilization and lower costs, thereby providing our customers with attractive long-term product offerings.”

The project teams from both companies have been established and will proceed with evaluating the potential collaboration.

As a leading producer of polyamide 6 and its precursors, BASF serves multiple industries, including packaging and textiles. The company operates production assets in Ludwigshafen, Germany; Antwerp, Belgium; Caojing, China; and Freeport, Texas, running one of the world’s largest polyamide production networks.

“BASF is a global leading chemical company with outstanding technical capabilities and a deep industry heritage. We look forward to exploring potential collaboration opportunities with BASF to jointly elevate our polyamide 6 and precursor businesses to new heights,” said Chen Zhong, President and CEO of HSCC. “We believe that this partnership can unlock strong synergies between both parties and deliver more competitive products and solutions to our customers.”

HSCC, headquartered in Fuzhou, Fujian Province, China, is a multinational enterprise integrating chemicals, chemical fibers, and advanced new materials. Recognized as a leading producer of caprolactam, the Group operates 31 manufacturing centers across China and Europe, establishing a fully integrated value chain from basic chemical raw materials to high-end new materials.