Expansion in Asia and other higher growth regions
The Arkema group plans to generate 30% of its revenue by 2017 in higher growth regions.
This platform includes:
- 7 production units (organic peroxides, specialty polyamides, fluorogases HCFC-22 and HFC-125, PVDF fluoropolymers, and rheology additives),
- a new R&D center (opened in October 2013).
In 2012, Arkema bolstered its position in polyamides by the acquisition of two Chinese companies: Casda, the world leader in sebacic acid derived from castor oil, and Hipro Polymers, which produces polyamides 10 from sebacic acid.
In October 2014, Arkema and Jurong Chemical, China’s leader in acrylic acid, finalized the creation of Sunke, a joint venture in which Arkema has a majority interest, comprising the assets of Jurong’s acrylic acid production site in Taixing in China.This operation enables the Group to accelerate the development of its Coating Solutions segment in Asia.
Arkema set to conquer Asia’s thiochemicals markets
Arkema chose Kerteh, Malaysia, to establish its new thiochemicals platform in Asia. This site is home to the world’s very first bio-methionine plant, built in partnership with Korean company CJ CheilJedang.
This industrial complex came on stream in January 2015, and produces the sulfur amino acid that is key to the animal feed needed to meet the strong demand in this market in Asia. The site also comprises the production of DMDS for the petrochemicals and refining markets. With overall investments of some €200 million, this is the Group’s biggest industrial project since 2006.
The construction of this new platform in Asia is fully consistent with the Group’s strategy: to consolidate its product lines with strong growth prospects and establish a worldwide presence through industrial bases on all three continents.
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Arkema expands in the Middle East
By investing in an organic peroxide production plant and a petroleum additives storage facility in Saudi Arabia, Arkema shows its commitment to serving the major local oil players more effectively and boosting its presence in this growth region.
The geographical re-balancing of Arkema’s activities has resulted in a proportional decrease of the European market. The percentage represented by Europe in total revenue fell to 38% in 2015, down from 60% in 2005. The markets in the United States and Asia, which have grown steadily for five years, were the beneficiaries of this decline.