October 26, 2020

Mitsubishi Materials Corporation

Regarding equity investment in Masan High-Tech Materials Corporation in Vietnam

Mitsubishi Materials Corporation (hereinafter referred to as "the Company") announces today that it concluded a final agreement for subscription of a private placement of new shares (hereinafter referred to as the "strategic investment") issued by Masan High-Tech Materials Corporation (hereinafter referred to as "MHT"), which has tungsten business.
The amount of the strategic investment is US$ 90 million (approx. 9.5 billion yen). At the moment, the strategic investment is scheduled to be completed by November 2020(*1), and the Company's stock ownership ratio is expected to be 10% after the strategic investment.

MHT has maintained a competitive position in the tungsten business, utilizing its production facilities in Vietnam as well as production and recycling facilities in Germany, Canada, and China owned by the tungsten business of H.C.Starck GmbH which was acquired in June 2020.
Through the strategic investment, the Company will build a long-term strategic collaboration alliance with MHT. This effort includes: discussion about establishment of joint operation in the tungsten recycling business with utilizing global bases of MHT, and collaboration in the midstream tungsten business mainly through but not limited to technical alliance for manufacturing high-quality tungsten powder, etc. In addition, MHT owns Nui Phao Mine (Thai Nguyen Province, Vietnam), one of the world's leading tungsten mine and the capacity of smelting from ores to the highly value-added tungsten compound. Take advantage of these resources, the Company will make efforts to ensure stable procurement of tungsten as raw material for cemented carbide tools.

Mitsubishi Materials Group, under the corporate philosophy "For People, Society and the Earth," pursues the vision that "We will become the leading business group committed to creating a sustainable world through materials innovation, with use of our unique and distinctive technologies, for People, Society and the Earth." Going forward, we will continue to build a richer society by making unique materials that meet customers' needs and providing processing solutions best suited to each customer. In addition, the Company positioned the tungsten related businesses including cemented carbide recycling and advanced metal powder as one of the growth pillars in its Medium-term Management Strategy covering the period from FY2021 to FY2023 which was announced in March 2020. The Company will accelerate the expansion of these businesses by implementing various measures including the collaboration with MHT.

Closing of the strategic investment is subject to certain regulatory approvals (including governmental approvals in Vietnam) as well as MHT shareholders' approval.

<Reference : About Masan High-Tech Materials Corporation>

Company Name
Masan High-Tech Materials Corporation (Former Company Name: Masan Resources Corporation)
Ho Chi Minh City, Vietnam
Main business areas
Processing tungsten, producing tungsten powder, and recycling of tungsten and other ores
Craig Richard Bradshaw
Issued Capital
9,892 billion VND (approx. 45.0 billion yen)
4,706 billion VND (approx. 21.4 billion yen) in 2019
(Tungsten business: 2,898 billion VND (approx. 13.2 billion yen) in 2019)
Production volume
Tungsten 6,073 ton (tungsten trioxide equivalent) in 2019
In April 2010
Stock Market
Vietnam UPCoM Market (security code: MSR)

<Contact on this matter>
IR Dept., Corporate Communications Dept.:+81-3-5252-5206