Arkema announces a plan to divest its two South African subsidiaries, Arkema Resins Proprietary Limited and Harveys Composites Proprietary Limited to South African company, Ferro Industrial Products Proprietary Limited, specializes in the production and distribution of coatings and materials for composite markets. Through this divestment, Arkema will dispose of non-strategic activities - such as resins for composite materials - which represent few synergies with the remainder of its coating activities.
As part of the Coating Resins business unit within the Coating Solutions segment, the two subsidiaries to be divested accounted for sales of some €45 million in 2012. The proposed divestment concerns 125 people, a production plant in Isipingo (Arkema Resins Proprietary Limited) near Durban, and 5 storage facilities (Harveys Composites Proprietary Limited).
Arkema will retain a presence in South Africa in the coating sector through Ferro, via licensing and distribution agreements.
The propose divestment is subject to approval by the relevant antitrust authorities in South Africa. The deal is expected to be closed in the second quarter 2014.
This operation is fully in line with Arkema’s ambition to be a world leader in specialty chemicals and advanced materials and with the target, announced at the September 2012 Investor day, to divest around 400 million euros of sales between 2012 and 2016.
A global chemical company and France’s leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, some 14,000 employees and 10 research centers, Arkema generates annual revenue of €6.4 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.