Arkema

Arkema S.A.

Type	Société Anonyme
Traded as	Euronext: AKE
Industry	Chemical industry
Founded	2004
Headquarters	Colombes, France
Key people	Thierry Le Hénaff (Chairman and CEO)
Products	Acrylics, synthetic resins, PVC, polymers, hydrogen peroxide, vinyl compounds, pipes, PMMA, HCFCs and chlorine compounds
Revenue	€5.905 billion (2010)
Operating income	€486 million (2010)
Profit	€347 million (2010)
Total assets	€4.818 billion (end 2010)
Total equity	€2.240 billion (end 2010)
Number of employees	13,900 (end 2010)
Subsidiaries	Alphacan, Altuglas International, Arkema Inc., Ceca, Coatex, MLPC International, Oxford Performance Materials, Resinoplast
Website	www.arkema.com

Arkema is a leading specialty chemicals and advanced materials company headquartered in Colombes, near Paris, France.

Created in 2004 when French oil major Total restructured its chemicals business, Arkema was introduced at the Paris stock exchange in May 2006. With a turnover of 6.5 billion €, Arkema has 14,000 employees in more than 40 countries, 10 research centers worldwide, and a total of 85 production plants in Europe, North America and Asia.

Arkema is organized into three business segments: Coating Solutions, Industrial Chemicals and Performance Products.

History

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

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.
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
2007: Arkema sells its agrochemical activities (CEREXAGRI) 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..

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).

Usine Arkema de Pierre Bénite

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 arcylic 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 (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

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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.

CECA

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CECA produces of specialty chemicals, such as Noroplast, Cecabase, and Acticarbone

CECA comprises seven business units: · Additives for the Oil and Gas Industry and Oilfield Chemicals. · Diatomite and Perlite-Based Filter Aids and Filtering Solutions. · Activated Carbon. · Molecular Sieves. · Specialty Surfactants. · Febex Specialty Phosphors. · Asphalt Additives.

MLPC International

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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.

Arkema worldwide

Locations

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

Arkema has 85 production facilities worldwide, including 44 in Europe, 26 in North America, 10 in Asia, and 5 in the rest of the world.

Arkema has 10 research centers worldwide: 5 in France (Lacq, Serquigny, Lyon, Carling and Verneuil), two in the United States (Cary, North Carolina and King of Prussia, Pennsylvania) and one in Japan (Kyoto).

Distribution of turnover, activity and manpower by region

North and South America	34% of sales 26 plants 20% of the workforce
Europe	40% of sales 44 plants 62% of the workforce
Asia and Middle East	21% of sales 10 plants 16% of the workforce
Rest of the World	5% of sales 2% of the workforce

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 26% of sales.

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 €6,5 billion, broken down as follows:

• High Performance materials, 33%.
• Industrial Specialties, 33%.
• Coating Solutions, 34%.

Arkema’s net debt in 2012 is €1,1Md that corresponds to a gearing of 50%.

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% ;

External links

• Official website