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Expansion in higher growth regions

The Arkema group plans to generate 1/3 of its revenue by 2020 in higher growth regions, mainly in Asia.

Solid positions in Asia

The last 10 years have seen, Asia Arkema's share of revenue rise from 13% in 2006 to 25% in 2016.

 

In China, the Group established its largest industrial platform in the world in Changshu (north of Shanghai), on which it has invested 500 million euros since 2006.

This platform includes:

  • 7 production units (organic peroxides, specialty polyamides, fluorogases HCFC-22 and HFC-125, PVDF fluoropolymers, and rheology additives)
  • A 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, started successfully in early 2015, is home to the world’s very first bio-methionine plant, built in partnership with Korean company CJ CheilJedang.

Arkema provides sulfur compound used in animal feed

This industrial complex came on stream in January 2015, and produces the sulfur amino acid for the manufacture of bio-methionine 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.

Arkema announced a project to double its methyl mercaptan (raw material of sulfur- amino acid and DMDS) production capacity to support the strong growth of the animal feed, petrochemical and refining markets in Asia. This project is expected to be finalized in 2020.

The construction and the expansion of this 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.

Polyamide 11: a massive investment!

Castor bean plant

Eager to sustain its customers' strong growth, in particular in automotive, 3D printing, and in consumer goods markets such as sports and electronics, Arkema announced in June 2017 an investment plan of some 300 million euros over five years in the biosourced polyamide 11 chain.

 

This major investment – the most important – will enable the Group to increase by 50% its polyamide 11 global production capacities. The new facility, which will produce both the amino 11 monomer and Rilsan® PA11 polymer, is expected to start at the end of 2021.

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