2026-10-20
- According to the announcement of 19 October 2026, BASF SE and Fuzhou-based Highsun Holding Group (HSCC) have signed a non-binding Memorandum of Understanding (MOU) to explore a 50:50 joint venture (JV) across the polyamide 6 (PA6) value chain.
- It is reported that the evaluation covers the European PA6 activities of both companies, and that adding their global extrusion activities outside North America is also being assessed.
- The downstream engineering plastics businesses of both companies are reportedly excluded from the evaluation.
- BASF’s PA6 production sites are reported to be Ludwigshafen (Germany), Antwerp (Belgium), Caojing (China) and Freeport, Texas (US), while HSCC is said to operate 31 manufacturing centers in China and Europe.
- Financial terms, capacities, the assets to be combined and the timing of a binding agreement or closing have not been disclosed.
BASF SE and Highsun Holding Group (HSCC) announced on 19 October 2026 that they have signed a non-binding Memorandum of Understanding (MOU) to explore a 50:50 joint venture (JV) across the polyamide 6 (PA6) value chain, according to Hydrocarbon Processing. It is reported that the evaluation centers on combining the European PA6 activities of the two companies, with the possible addition of their global extrusion activities outside North America. The MOU carries no legal obligation, and financial terms and timing have not been disclosed.
The matter is a non-binding MOU under which BASF and HSCC will evaluate creating a joint venture with a 50:50 ownership structure across the polyamide 6 value chain. According to the report, the central item under evaluation is the combination of both companies’ European PA6 businesses. It is also reported that the two companies are assessing whether to include their global extrusion activities outside North America in the venture. The downstream engineering plastics businesses of both companies are said to be outside the scope of this evaluation.
It is reported that project teams from both companies have been set up to advance the evaluation. No timeline or closing date has been disclosed. Because the MOU is non-binding, it is said that the establishment of the final joint venture has not yet been decided.
On the BASF side, Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, is quoted as saying that the European chemical industry needs to become more competitive and that consolidation can help. He reportedly said the companies aim to combine the best assets, technologies and commercial expertise to strengthen their PA6 businesses, adding that “BASF intends to actively shape this development.” Chen Zhong, President and Chief Executive Officer (CEO) of HSCC, is reported to have described BASF as a globally leading chemical company with strong technology and industry heritage, and to have said he expects the cooperation to create synergies and more competitive products for customers.
BASF is described as a leading producer of PA6 and its precursors, serving industries including packaging and textiles. Its production sites are reported to be Ludwigshafen in Germany, Antwerp in Belgium, Caojing in China and Freeport, Texas, in the United States, forming one of the largest polyamide production networks worldwide. HSCC is headquartered in Fuzhou, Fujian Province, China, and is said to operate in chemicals, chemical fibers and advanced new materials. It is recognized as a leading caprolactam producer.
Numbers
The key figures confirmed for this matter concern the ownership structure and the number of sites. The joint venture is being evaluated with a 50:50 ownership split between BASF and HSCC. The scope under evaluation is the European PA6 value chain, with global extrusion activities outside North America mentioned as an additional candidate.
BASF is reported to have four PA6-related production sites: Ludwigshafen, Antwerp, Caojing and Freeport. HSCC is said to run 31 manufacturing centers across China and Europe. In addition, when Highsun acquired Fibrant in 2018, the plants were located in Geleen (the Netherlands) and Nanjing (China), about 900 Fibrant employees transferred on the acquisition date, and Highsun was described as having more than 5,000 employees and annual revenue above 3 billion euros. These figures date from 2018 and may differ from the current scale.
On the other hand, the specific assets to be placed in the joint venture, annual production capacity, investment amount, valuation, the form of equity contributions and the target closing date have not been disclosed. At this stage, the economic scale of the transaction is therefore difficult to gauge from the numbers.
Timeline
2018-10-30 — ChemicaInvest (owned 65% by CVC and 35% by DSM) transferred its Fibrant shares to Highsun Holding Group, according to Chemelot. The acquisition covered Fibrant BV and 60% of Fibrant Co. Ltd.
2026-10-19 — BASF and HSCC announced a non-binding MOU to evaluate a 50:50 joint venture across the PA6 value chain.
Note
- PA6 (Polyamide 6): a polyamide-family resin made from caprolactam, used in packaging and textiles, among other applications.
- Extrusion: a processing step in which resin is heated, melted and shaped into a continuous form.