Arkema

Arkema, a leader in Specialty Materials

Building on its unique set of expertise in materials science, Arkema designs materials to address the ever-growing demand for innovative and sustainable materials, driven by the challenges of new energies, new technologies, the depletion of resources, mobility, and increasing urbanization.

SHARE

The Group is structured into three coherent and complementary segments dedicated to Specialty Materials (Adhesive Solutions, Advanced Materials, and Coating Solutions) accounting for 82% of its sales, and an Intermediates segment leveraging competitive and global product lines.

Sustained by the collective energy of its 20,600 employees, Arkema operates in some 55 countries and reports sales of €7.9 billion.

History

Arkema was created when French oil major Total restructured its chemicals business. The restructuring was a gradual process that began many years earlier:

1850: Creation of The Pennsylvania Salt Manufacturing Co. by five Philadelphia Quakers.

1957: The Pennsylvania Salt Manufacturing Co. changed its name to Pennsalt Chemicals Corp.

1969: Wallace and Tiernan Inc. merged into Pennsalt Chemicals Corp, forming Pennwalt Corp.

1971: Creation of Aquitaine Total Organico (ATO), a joint Elf-Total subsidiary. Creation of Produits Chimiques Ugine Kuhlmann (PCUK).

1973: Creation of ATO Chimie.

1980: Creation of Chloé Chimie (40% Elf Aquitaine, 40% Total and 20% Rhône-Poulenc).

1983: Creation of Atochem - Chemical production in France is reorganized around Atochem, a wholly owned Elf Aquitaine subsidiary incorporating the activities of ATO Chimie, Chloé Chimie and most of PCUK.

1989: Atochem North America Inc. formed from the merger of Pennwalt Corp., M&T Chemicals, and Atochem Inc.[5]

1990: Chemical production is again reorganized in France: Orkem's petrochemicals, styrenics, fertilizers and acrylics businesses are integrated into Atochem, while specialties (resin and paint) move to Total. Acquisition of Montedison's organic peroxide business.

1992: Atochem becomes Elf Atochem.

2000: Creation of Atofina by merging TotalFina and Elf's chemical businesses following the two companies’ 1999 merger.

2004: Creation of Arkema on October 1.

2006: Arkema IPO on the Paris Bourse on May 18 [6]

2007: Arkema sells its agrochemical activities (CEREXAGRI)[7] and its formaldehyde activities

2007: Arkema acquires Coatex company (specialty acrylic polymers)

2010: Arkema acquires acrylic Dow assets in the US

2011: Arkema acquires Total coating resins (Cray Valley and Sartomer)

2011 : in June, Arkema joined the CAC Next 20 French stock market index.

2012: Arkema acquires Chinese Company Hipro Polymers (producer of bio-Polyamides) and Casda Biomaterials (producer of plant raw materials)

2012 : in July, Arkema sold for 1 symbolic euro its vinyl products business segment to the Klesch group for reasons of profitability,but also to recenter its operations exclusively on specialty chemicals. As part of this divestment, Arkema made a 100 million euro cash payment to the Klesch group and took on debts amounting to 470 million euros to help revive the activity. In response to fears of redundancy and to protests from employees at a number of production sites, the trade unions negotiated, with the Arkema management, industrial and social guarantees as well as support measures designed to protect the rights of employees should the Klesch group implement redundancies following their take-over of the vinyl products activities. Hence two trust funds of €20 M were set up to secure compensation payments and the rights of employees of the companies that were sold off.

2012 : as part of its strategic refocusing on specialty chemicals, Arkema acquired a new visual identity as well as a new signature "Innovative Chemistry".

2015 : in February the company finalized the purchase of Bostik from Total S.A..[16] The company also joined CJ Group of South Korea to invest in the manufacture of L-methionine in Malaysia

2017 : During Hurricane Harvey, some organic peroxides burned in the Arkema Crosby TX plant, causing a 1.5 mile evacuation zone around the site.

Organization

Since Arkema sold its Vinyl product segment in July 2012, Arkema reorganized its activities into three business segments: High Performance Materials, Industrial Specialties and Coating Solutions. Each of these segments represent one third of Arkema's turnover.

High Performance Materials

High Performance Materials segment gathers four high value added product lines: Specialty polyamides, Fluoropolymers (PVDF), molecular sieves for filtration and adsorption and organic peroxides.

Its flagship brands are Rilsan (polyamide 11), Luperox(Organic Peroxide), Kynar (PVDF), Siliporite (Molecular Sieves).

Industrial specialties

Industrial Specialties segment produces major chemical intermediates such as thiochemicals (for animal nutrition, gas natural odorant), fluorochemicals (for refrigeration, air conditioning, blowing agent for insulating foam), PMMA (or acrylic glass for furnitures, automotive applications, noise barriers), and hydrogen peroxide (pulp and textile bleaching, chemical synthesis, water treatment).

The business segment's flagship brands include Altuglas(PMMA), Albone (hydrogen peroxide), DMDS[23] (agricultural fumigant) and Forane (refrigerants).

Coating Solutions

Starting from upstream acrylic monomers, the Group has built a presence across every segment of the coating market. Its portfolio of coating materials and technologies includes waterborne, solventborne, powder coating resins and additives from Arkema Coating Resins, rheology additives for waterborne coatings from Coatex and photocure resins for optic fibers, graphic arts, electronics, etc. from Sartomer. Its flagship brands are Envia, Rheotec, Sarbio.

Subsidiaries

Altuglas International

Logo

Altuglas International has eight production facilities — four in Europe, three in North America, and one in South Korea.It manufactures and markets four product lines: acrylic resins, Altuglas BS acrylic beads, acrylic sheets.

Coatex

Coatex produces rheological additives for aqueous formulations. It has six production facilities, in France, the Netherlands, the United States (South Carolina), South Korea, China and Brazil.

Den Braven

Den Braven, leader of sealants for insulation and construction in Europe.

Sartomer

Sartomer is the first global supplier of specialty acrylates and methacrylates monomers and oligomers for a broad range of markets : specialty coatings, printinginks, composites, flooring, electronics, adhesives and many other high-end applications.

MLPC International

Logo

MLPC International specializes in the chemistry of carbon sulfide, cyanogen chloride and amines.

Bostik

Bostik is the world's third largest adhesives and sealants company, with brands such as Bostik, Blu-Tack, Prestik.

Casda

Casda, the world leader in sebacic acid from castor oil

Arkema worldwide

Locations

Arkema operates through industrial facilities in Europe, North America and Asia and marketing subsidiaries in around 40 countries.

Arkema has 144 production facilities worldwide, including 61 in Europe, 43 in North America, 40 in Asia and in the rest of the world.

Arkema has 13 research centers worldwide: 7 in France (Lacq, Serquigny, Cerdato, Carling, Genay, Pierre-Benite and Verneuil), three in the United States (Cary, North Carolina, Wauwatosa, Wisconsin and King of Prussia, Pennsylvania) and two in China (Shanghai and Changshu).

Distribution of turnover, activity and manpower by region

North and South America 31% of sales

38 plants

Europe 38% of sales

60 plants

Asia and the rest of the world 31% of sales

38 plants

Sales by region

Most of Arkema's sales are generated in Europe, which accounts for 40% of the total. North and South America represents 34% of sales. Arkema has had a strong presence in China for over 13 years. Asia alone now accounts for 31% of sales.

Crosby, Texas

Main article: 2017 Arkema plant explosion

Arkema operates a plant in Crosby, Texas, which flooded during Hurricane Harvey in August 2017. Arkema said it was unable to prevent the possibility of an explosion at the plant, after refrigeration equipment that kept temperature sensitive organic peroxides cold failed due to flooding. On August 31 explosions were reported to be coming from the plant, but these explosions were perhaps just "small container ruptures".

Research and development

Research and development spending totaled roughly 150 million euros, with half allocated to “green chemistry.” Arkema employs more than 1,200 researchers, whose work focuses on two main areas: ultra-high performance polymers and sustainable development solutions.

Arkema has made sustainable development a central focus of its R&D strategy, introducing a broad array of innovative materials to help customers reduce their energy use, increasing its use of renewable feedstock, developing nanostructured materials and devising the processes of the future.

Financial performance

Arkema generates sales of €7.9 billion, broken down as follows:

Advanced Materials, 32%.

Adhesive Solutions, 25,5%.

Coating Solutions, 24,5%.

Intermediates, 18%.

Arkema's net debt in 2020 is €1,9 billion.

Shareholder structure

As of 31 December 2010, the major stockholders of Arkema (owning at least 5% of capital declared to AMF) were Greenlight Capital (5,5%), Dodge & Cox (5.2%), Groupe Bruxelles Lambert (10%).

Since January 1, 2012, the level of 5% reported to AMF was passed by:

FMR LLC (Fidelity Management & Research): declares having +5% of Arkema capital (August 23, 2012);

Groupe Bruxelles Lambert: sold all its shares in the capital (March 14, 2012);

Individual shareholders: 94.0% ;

Group employees : 5,5% ;