BASF and Highsun explore European polyamide joint venture

BASF and China’s Highsun Holding Group are evaluating the creation of a 50/50 joint venture to consolidate their European polyamide 6 (PA6) and precursor businesses. The proposed collaboration aims to improve cost efficiency and plant utilization to bolster competitiveness in the global market.

The potential deal could include their respective extrusion businesses outside of North America. Highsun currently produces the raw material caprolactam in Geleen, Netherlands, while BASF operates polyamide and precursor production facilities in Ludwigshafen, Germany, and Antwerp, Belgium.

BASF CEO Markus Kamieth stated that the European chemical industry requires consolidation and supportive industrial policies to create stronger companies capable of competing globally. The companies have signed a non-binding letter of intent, and project teams are now working to evaluate the partnership. Any final agreement may trigger a review by the European Commission under regulations regarding subsidies from third countries.