|Masan High-Tech Materials organised its 2022 annual general meeting of shareholders with the theme Growth through Sustainability |
Last year, Masan High-Tech Materials (MHT) total tungsten production increased by a record 97 per cent compared to 2020, 26 per cent of which came from the recycling of tungsten scraps and the remainder from primary supply sources, including MHT’s Nui Phao mine in Thai Nguyen.
Net Revenues were up 86 per cent on-year at $586 million. Tungsten revenues were significantly higher due to the consolidation of H.C. Starck Tungsten Powders (HCS) and the higher prices in 2021 as compared to the same period last year. MHT's earnings before interest, taxes, and depreciation (EBITDA) increased by 114 per cent for 2021. MHT's forward order book is the strongest it has been in many years, which is positive for both sales volumes and prices.
Speaking at the meeting, Craig Richard Bradshaw, CEO of MHT said, “We performed strongly in 2021 despite the challenges of the pandemic and its subsequent impact on global supply chains and transport systems. We achieved record revenues for the year along with record tungsten production and recycling rates."
Last year witnessed results of the successful integration with the tungsten business platform of H.C. Starck operating in Germany, Canada, and China as MHT carried out technology transfer, leveraging the more than 100 years of experience of H.C. Starck, while at the same time promoting its global business restructuring with the goal of improving operational efficiency and expanding the business and product portfolio.
The HCS business contributed significantly to the overall MHT results with an EBITDA of $32.4 million while the Vietnam-based businesses also contributed to the overall results, vindicating the decision to acquire the HCS business in the early stages of the pandemic in 2020.
MHT's ongoing investment in innovation and development is also delivering value with new customer-centric products specifically tailored for the electric mobility and 3D printing segments coming into the market soon.
Beyond these new product ranges, the team has also developed new analytical equipment which is now in the prototype stage. In recycling, MHT has filed additional patent applications for new recycling processes for cobalt bearing sludges and battery black mass.
These new processes will enable the recycling of various hard-cutting tool sludges and battery black mass with a lower environmental footprint than current recycling processes. MHT sees this as a potential gamechanger for environmentally sustainable recycling of copper, cobalt, nickel, and other materials.
With a strong commitment to technology and innovation across all processing chains, MHT dominates the high-tech materials manufacturing industry, while gaining further acclaim at both national and international levels, with 16 domestic patents, 87 international patents, 54 application patents, 40 ongoing scientific projects, and 32 projects in the ideation stage.
Danny Le, chairman of MHT, shared the company’s strategic vision for 2022-2025, “In the very near future, MHT will be more than a supplier of strategic high-tech materials, partnering with disruptive consumer technology platforms to create direct-to-consumer products where tungsten is a key element. Most importantly, we envision a circular platform where we can recycle these products to drive sustainability and productivity."
In 2022, the company will continue to focus on recycling raw materials, implementing carbon-neutrality initiatives and promoting the benefits of the circular economy. In the context of the global economic recovery, positive signals in the tungsten market and the shift from gasoline to electric vehicles, tungsten prices will be likely to go up in 2022. The company expects to achieve 2022 revenues of about $652 million.
At the meeting, the shareholders also approved the issuance of new shares under the employee stock ownership programme at a price of VND20,000 (87 US cents) per share, which is expected to take place in the second quarter of 2022. This incentive aims to recognise the contributions of outstanding employees to the company. Proceeds from the issuance will be used to improve capital conditions, fund business activities, and replenish the company’s working capital.
Towards building a long-term sustainable business for Masan's people and the community, MHT remains committed to growth through sustainability. MHT will focus on research and development and cooperate with the world’s leading innovative businesses to create strategic and high-tech advanced materials.
MHT also strives for steady improvement of its processes to meet the ever-changing needs of high-tech industry customers.