Milbank, Tweed, Hadley & McCloy advised Masan Group Corporation, one of Vietnam’s largest private sector business groups, in relation to the signing of definitive agreements to establish a joint venture for the production of value-added tungsten chemicals in Vietnam.  The joint venture will be between H.C. Starck, a leading worldwide manufacturer of technology metals and one of the biggest companies in the global tungsten industry, and Nui Phao Mining Company (“Nui Phao”), a subsidiary of Masan Group Corporation.

Nui Phao and H.C. Starck will own 51% and 49% respectively of the joint venture, which will process all of Nui Phao’s tungsten concentrate into higher value-add tungsten chemicals, including ammonium paratungstate (APT) and blue tungsten oxide (BTO).  The joint venture company will have an installed capacity of 6,500 tons tungsten trioxide per annum.  H.C. Starck will manage the joint venture and has committed to buy a significant share of the production for its own internal use.  The company will also support marketing of the remaining product through the joint venture.

The establishment of the joint venture and closing of the definitive agreements are subject to customary corporate and regulatory approvals.

The Milbank team advising Masan Group Corporation was led by partner Jacqueline Chan (Singapore) with associates Andrew Gibb and Kristina Hokenberg (Singapore), Tim Mackey (Tokyo) and Zizhen Chen (Hong Kong).

In advising on the transaction Jacqueline Chan said “This is an important deal for the establishment of Vietnam as a leading Tungsten chemical supplier in the global market. We were proud to have been able to support Masan Group on this important transaction.”