Vietnam’s Masan secures Japan’s Sojitz as second strategic investor in tungsten business

MASAN Group has signed a preliminary agreement to sell a 5 per cent stake in its tungsten subsidiary, Masan High-Tech Materials (MSR), to Japanese trading house Sojitz Corp.

This marks its second strategic investment deal in less than two months as the Vietnamese critical-minerals producer expands its international partnerships amid efforts by global manufacturers to diversify supply chains.

Under a memorandum of understanding (MOU) signed on Monday (Nov 9) in Tokyo, Sojitz will acquire the stake from Masan Horizon, a wholly owned subsidiary of Masan Group, at a price no lower than that paid by US strategic investor The Elmet Group in an earlier deal.

On Oct 1, MSR completed the sale of a 4.99 per cent stake to Elmet in a transaction that valued the Vietnamese tungsten producer at US$2.5 billion. The transaction also included a commercial agreement spanning more than eight years, under which MSR will supply Elmet with about 1,250 tonnes of tungsten trioxide (WO3)-equivalent annually, generating an estimated US$1.5 billion in revenue over the initial term.

The latest deal also comes with a planned long-term commercial agreement for Sojitz to distribute MSR’s tungsten and fluorspar products in Japan, targeting industries including semiconductors, artificial intelligence infrastructure, aerospace, energy and automotive manufacturing.

Definitive agreements are expected by the end of 2026, subject to due diligence and regulatory approvals, Masan said. The MOU is largely non-binding, and other financial details were not disclosed.

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The proposed Japanese investment represents the second phase of MSR’s strategic shareholder programme, aimed at deepening relationships with international customers and building a long-term investor base ahead of its planned move from Vietnam’s Unlisted Public Company Market to the country’s main bourse, Ho Chi Minh City Stock Exchange.

MSR is targeting to file for a mainboard listing in 2027, while Masan Group intends to retain control following the proposed transactions.

Expanding global reach

The partnership comes as global manufacturers seek to diversify critical-mineral supply chains beyond China, which dominates tungsten production.

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Tungsten is used in semiconductors, aerospace, defence equipment and precision manufacturing because of its hardness and ability to withstand extremely high temperatures.

MSR operates the Nui Phao polymetallic mine and a major tungsten processing complex in Vietnam’s northern Thai Nguyen province. It once described itself as the world’s largest producer of midstream and downstream tungsten products outside China.

The company also said it is “one of the very few” tungsten producers whose products have been qualified by customers in the US, Japan, South Korea and Europe.

Through Sojitz’s distribution network, MSR aims to strengthen its access to Japanese manufacturers seeking alternative sources of tungsten and fluorspar, complementing its existing partnership with Elmet in the US market.

Sojitz has had an established investment presence in Vietnam spanning industrial parks, food distribution, retail and logistics, including a beef-processing joint venture with Vietnamese dairy giant Vinamilk.

Meanwhile, MSR’s expansion also comes amid improving financial performance, supported by higher tungsten prices and increased sales volumes.

For the first nine months of 2026, MSR reported revenue of 25.69 trillion dong (US$1 billion) and net profit before minority interests of 4.35 trillion dong, exceeding the upper end of its full-year earnings guidance by about 70 per cent.

Following an interim dividend of 1,000 dong per share in September, shareholders approved a further 5,000 dong per share in October, bringing total cash dividends for 2026 to about 6.6 trillion dong.

From 2027, MSR plans to distribute at least half its consolidated annual net profit as cash dividends, subject to shareholder approval.

Jefferies Singapore is the exclusive financial adviser for Masan Group. THE BUSINESS TIMES