Arkema S.A. is a publicly listed, multi-national manufacturer of specialty materials, headquartered in Colombes, near Paris, France. It has three specialty materials segments (or divisions); adhesives, advanced materials and coatings. A further segment covers chemical intermediates. The company was created in 2004, as part of French oil major Total's restructuring of its chemicals business, and floated on the Paris stock exchange in May 2006. Turnover in 2021 was €9.5 billion. Arkema operates in more than 55 countries and has 20,200 employees, 13 research centers and 144 production plants.

History

Arkema itself was created when French oil major Total restructured its chemicals business in 2004, but the company's roots go back many years.

Origin and evolution

Pennsylvania Salt Manufacturing Company 1879

In 1971, Elf and Total merged their chemical operations into Aquitaine Total Organico (ATO), a joint subsidiary. The same year saw the creation of Produits Chimiques Ugine Kuhlmann (PCUK). The joint venture was renamed ATO Chimie in 1973. A second company, Chloé Chimie (40% Elf Aquitaine, 40% Total and 20% Rhône-Poulenc) was formed in 1980 to take over Rhône-Poulenc's chlorochemicals business. Three years later, Total sold its stake in Chloé Chimie to Elf and chemical production in France was reorganized around Atochem, a wholly owned Elf Aquitaine subsidiary that incorporated the activities of ATO Chimie, Chloé Chimie and most of PCUK. In 1989, Elf Aquitaine acquired the American, Pennwalt Corporation and along with M&T Chemicals and Atochem Inc formed Atochem North America Inc. Pennwalt can trace its roots to the formation of The Pennsylvania Salt Manufacturing Co. by five Philadelphia Quakers in 1850. The Pennsylvania Salt Manufacturing Co. changed its name to Pennsalt Chemicals Corp in 1957 and merged with Wallace and Tiernan Inc. to form Pennwalt Corp in 1969. The year 1990 saw another reorganization of chemical production in France. Orkem's petrochemicals, styrenics, fertilizers and acrylics businesses were integrated into Atochem, while specialties (resin and paint) moved to Total. Montedison's organic peroxide business was acquired. Atochem was renamed Elf Atochem in 1992 and merged with Total's chemical businesses into Atofina a year after the takeover of Elf by TotalFina in 1999.

Formation, independence and listing

In February 2004, Total, the French-based multinational oil conglomerate announced a reorganisation of its chemicals business. A new company under Total's ownership, named Arkema, was formed on 1 October into which Total placed certain assets held by its Atofina subsidiary, which was then dissolved. The ''kem'' part of Arkema's name references the company as a chemicals producer. Arkema was structured into three divisions producing vinyl products (chlorochemicals and PVC, vinyl compounds and pipes and profiles), industrial chemicals (acrylics, fluorochemicals,

hydrogen peroxide Hydrogen peroxide is a chemical compound with the formula . In its pure form, it is a very pale blue liquid that is slightly more viscous than water. It is used as an oxidizer, bleaching agent, and antiseptic, usually as a dilute solution (3 ...

PMMA PMMA may refer to: * para-Methoxymethamphetamine, a stimulant drug * Philippine Merchant Marine Academy * Poly(methyl methacrylate), a transparent thermoplastic often used as a glass substitute {{disambig ...

and thiochemicals) and performance products (additives,

organic peroxides In organic chemistry, organic peroxides are organic compounds containing the peroxide functional group (). If the R′ is hydrogen, the compounds are called hydroperoxides, which are discussed in that article. The O−O bond of peroxides easily b ...

, agrochemicals and urea-formaldehyde resins). Total's intention was to spin-off Arkema into an independent listed company. This was achieved on 18 May 2006 when Arkema debuted on the Paris stock market. In June 2011, Arkema joined the CAC Next 20 French stock market index.

Acquisitions, disposals and reconfigurations

2007: Arkema sells its agrochemical business (Cerexagri) to United Phosphorus and its urea-formaldehyde activities to

Hexion Hexion Inc. or Hexion (previously Momentive Specialty Chemicals) is a chemical company based in Columbus, Ohio. It produces thermoset resins and related technologies and specialty products. Hexion is organized into two divisions: the Epoxy, Phen ...

.
2007: acquires Coatex company (specialty acrylic polymers)
2010: acquires acrylic Dow assets in the US
2011: acquires Total coating resins (Cray Valley and Sartomer)
2012: acquires Chinese Company Hipro Polymers (producer of bio-Polyamides) and Casda Biomaterials (producer of plant raw materials)
In July 2012, Arkema sold for 1 symbolic euro its vinyl products business segment to the Klesch group for reasons of profitability, but also to re-center 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. Following the sale, Arkema reorganized its activities into three business segments: High Performance Materials, Industrial Specialties and Coating Solutions. Each represented about one third of Group turnover.
2015 : Purchase of Bostik from Total S.A. The company also joined

CJ Group CJ Group () is a South Korean conglomerate holding company and one of the largest Chaebol headquartered in Seoul, South Korea. It comprises numerous businesses in various industries of food and food service, pharmaceutics and biotechnology, ente ...

of South Korea to invest in the manufacture of

L-methionine Methionine (symbol Met or M) () is an essential amino acid in humans. As the precursor of other amino acids such as cysteine and taurine, versatile compounds such as SAM-e, and the important antioxidant glutathione, methionine plays a critical ro ...

in Malaysia.
2020 : Plexiglas business sold to the American group Trinseo for $1.1 billion. 2021 : Acquisition of Ashland's Performance Adhesives business for $1.65 billion. 2022 : Acquisition of Permoseal, an adhesive solutions company in South Africa.

Organization

Adhesive Solutions

Formed in 2020 by the transfer of Bostick from the High Performance Materials segment.

Advanced Materials

This segment gathers together four main product lines: specialty polyamides, fluoropolymers (PVDF), molecular sieves for filtration and adsorption and organic peroxides. Brands include Rilsan (polyamide 11), Luperox (

Organic Peroxide In organic chemistry, organic peroxides are organic compounds containing the peroxide functional group (). If the R′ is hydrogen, the compounds are called hydroperoxides, which are discussed in that article. The O−O bond of peroxides easily b ...

), Kynar (

PVDF Polyvinylidene fluoride or polyvinylidene difluoride (PVDF) is a highly non-reactive thermoplastic fluoropolymer produced by the polymerization of vinylidene difluoride. PVDF is a specialty plastic used in applications requiring the highest pu ...

), Siliporite ( Molecular Sieves).

Coating Solutions

Starting from upstream acrylic monomers, the Group has built a presence across the coating market. Its portfolio of coating materials and technologies includes waterborne, solvent borne, powder coating resins and additives from Arkema Coating Resins, rheology additives for waterborne coatings from Coatex and photocured resins for optic fibers, graphic arts, electronics, etc. from Sartomer. Brands are EnVia, Rheotec, Sarbio.

Intermediates

Includes thiochemicals (for animal nutrition, gas natural odorant), fluorochemicals (for refrigeration, air conditioning, blowing agent for insulating foam) and hydrogen peroxide (pulp and textile bleaching, chemical synthesis, water treatment). Brands include Albone (hydrogen peroxide), Paladin ( DMDS agricultural fumigant) and Forane (refrigerants).

Subsidiaries

• Bostik specializes in bonding solutions; •Coatex produces rheology additives for water-based formulations. Its production sites are located in France (Genay), the Netherlands (Moerdijk), the United States (Chester, South Carolina), Korea (Kunsan), China (Changshu) and Brazil (Araçariguama). Its main brands are Rheocoat, Coadis, Rheocarb, Ecodis, Viscoatex and Coapur. •MLPC International specializes in the chemistry of carbon sulphide, cyanogen chloride and amines and produces vulcanising agents for the rubber industry. The company was previously known as "Manufacture Landaise de Produits Chimiques". Its origins go back to 1926. Plants are at Lesgor and nearby Rion-des-Landes, in the

Landes ''Landes'', or ''Lanas'' in Gascon, means moorland or heath. ''Landes'' and ''Lanas'' come from the Latin ''plānus'' meaning “‘flat, even, level, plain’”. They are therefore cognate with the English plain (and plane), the Spanish word ''l ...

department of

Nouvelle-Aquitaine Nouvelle-Aquitaine (; oc, Nòva Aquitània or ; eu, Akitania Berria; Poitevin-Saintongeais: ''Novéle-Aguiéne'') is the largest administrative region in France, spanning the west and southwest of the mainland. The region was created by ...

in south-western France. •Sartomer produces specialty acrylates for UV curing systems (photo-crosslinking). •Den Braven makes sealants for insulation and construction. •Casda manufactures sebacic acid from castor oil.

Arkema worldwide

Locations

Arkema operates through industrial facilities in

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...

North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and th ...

and

Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...

and marketing subsidiaries in around 40 countries. Arkema has 144 production facilities worldwide, including 61 in

, 43 in

, 40 in

and in the rest of the world. Arkema has 13 research centers worldwide: 7 in

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

( Lacq,

Serquigny Serquigny () is a commune of the Eure department in Normandy in northern France. It lies on the rail line from Cherbourg to Paris. In the village there is a privately owned manor house called Chateau de Maubuisson. Population Démographie ...

, Cerdato, Carling, Genay, Pierre-Benite and Verneuil), three in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

( Cary, North Carolina, Wauwatosa, Wisconsin and King of Prussia, Pennsylvania) and two in

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...

(

Shanghai Shanghai (; , , Standard Chinese, Standard Mandarin pronunciation: ) is one of the four Direct-administered municipalities of China, direct-administered municipalities of the China, People's Republic of China (PRC). The city is located on the ...

and Changshu).

Sales by region

Most of Arkema's sales are generated in

, which accounts for 40% of the total.

North North is one of the four compass points or cardinal directions. It is the opposite of south and is perpendicular to east and west. ''North'' is a noun, adjective, or adverb indicating direction or geography. Etymology The word ''north ...

and

South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sou ...

represents 34% of sales. Arkema has had a strong presence in

for over 13 years. Asia alone now accounts for 31% of sales.

Incidents and legal actions

Crosby, Texas plant explosion

In August 2017,

Hurricane Harvey Hurricane Harvey was a devastating Category 4 hurricane that made landfall on Texas and Louisiana in August 2017, causing catastrophic flooding and more than 100 deaths. It is tied with 2005's Hurricane Katrina as the costliest ...

caused the flooding of Arkema's Crosby, Texas plant. Arkema said it would be unable to prevent an explosion at the plant, after refrigeration equipment failed that kept temperature sensitive

cold. On August 31, explosions were reported to be coming from the plant. These turned out to be "small container ruptures" of burning organic peroxides. A 1.5 mile evacuation zone was set up around the site.

Preformation legacy issues

EU antitrust breach

Total, Elf Aquitaine and Arkema were investigated by the

EU Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...

for involvement in an illegal supply, sales and pricing cartel in the hydrogen peroxide and sodium perborate markets. The Commission found that Arkema's predecessor companies Atochem and Atofina committed the infractions between May 1995 and December 2000. Arkema was fined €78 million in May 2006 for breaching EU antitrust law.

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.

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 Greenlight Capital is a hedge fund founded in 1996 by David Einhorn (hedge fund manager), David Einhorn. Greenlight invests primarily in publicly traded North American corporate debt offerings and equities. Greenlight is most notable for its sho ...

(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%;

References

External links

* {{Authority control French companies established in 2004 Chemical companies of France Specialty chemical companies Chemical companies established in 2004 Companies based in Île-de-France 2006 initial public offerings TotalEnergies French brands Corporate spin-offs Multinational companies headquartered in France Companies listed on Euronext Paris