MOSCOW (MRC) -- Arkema said today that it has finalized the divestment of its functional polyolefins business to SK Global Chemical, reported Chemweek.
The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the group’s activities on specialty materials.
With sales of around EUR250 million (USD279.2 million), the functional polyolefins business, which is part of the polymethyl methacrylate (PMMA) activity, comprises ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets. The business employs around 100 people in France and has an international sales network of 30 people who will be joining SK Global Chemical, a subsidiary of South-Korean group SK.
Based on an enterprise value of €335 million, this divestment is in line with the group’s strategy to become a pure specialty materials player by 2024, centered around three segments: adhesive solutions, advanced materials and coating solutions. As part of that focus, Arkema will implement different strategies for its intermediates division, consisting of methyl methacrylate (MMA) and PMMA, fluorogases and the acrylics business in Asia.
The company is planning to divest the MMA and PMMA business, explore possible alternatives to minimize its exposure to the most emissive applications of its fluorogases, and rebalance Asia Acrylics between upstream and downstream.
As MRC informed earlier, in October 2019, Arkema successfully brought on stream a new 90,000-ton acrylic acid reactor at its Clear Lake, Texas site to support the growth of its North American customers in the superabsorbents, paints, adhesives and water treatment markets.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.