2005/1/27 Arkema

Arkema presents a Draft Consolidation Plan
to secure the long-term future of its Vinyl Products Business Segment
http://www.arkemagroup.com/arkema/gb/Comm/d_detail.cfm?IdComm=1242

Arkema confirms its wish to remain a leading European player in the activities covered by its Vinyl Products business segment, and today presented the Central Works Council with a draft consolidation plan to secure its long-term competitiveness and ability to ride out the economic climate. The plan entails no plant closure and no redundancies, and is backed by a Euro 300 M capital expenditure programme over 5 years.

Arkema consists of three business segments - Vinyl Products, Industrial Chemicals and Performance Products -, generating sales of 5 billion euros and employing 18,600 people.

The Vinyl Products business segment - Chlorochemicals, PVC (polyvinyl chloride), Vinyl Compounds, and Pipe and Profile Converting - accounts for 27 % of Arkema's turnover, achieved to a large extent in the European market.
With its overcapacity and acute competition, this market is also characterised by very clear economic cycles and an ongoing erosion of margins over many years.
Arkema confirms its wish to remain a leading player in Vinyl Products. However, the ongoing problems beleaguering these activities constitute a threat to the long term of this business segment. 2004, half-way through the cycle, produced a small profit, whereas 2003, at the trough of the cycle, generated a major operating loss. In the light of this situation, it is vital to consolidate the Vinyl Products business segment in order to restore its long-term competitiveness and its ability to ride out the economic climate, in particular with the need for a return to profitability at the bottom of the cycle.
A draft plan to consolidate the Vinyl Products business segment was today presented to Arkema's Central Works Council. The implementation of the plan is subject to the legal information and consultation process involving the trade unions.
Vital for the future of the activity, the project would be backed by a Euro 300 M major investment programme over 5 years, based on the following points:
- the expansion of the most efficient plants,
- the closure of structurally loss-making plants,
- ongoing efforts in terms of safety and environmental protection,
- the consolidation of initiatives increasing productivity.

The project concerns every production facility in France within Arkema's Vinyl Products business segment:
Saint-Auban, Saint-Fons, Balan, Jarrie, Fos, Lavera and Berre.
This draft plan entails no site closure. It should result in the loss of 548 jobs overall (including 11 at the Paris-La Defense Head Office). Arkema will make no personnel redundant, by facilitating mobility and solidarity within the Company and the Total Group, and by offering voluntary early retirement packages on a local basis; the latter would be entirely funded by the Company, and could potentially concern 318 people.
Arkema's management undertake to put in place the necessary resources to assist everyone concerned in finding a solution as soon as possible. In particular, a central cell will be set up to coordinate the local cells established specifically at each site in order to assist employees opting for mobility or a personal project. A specific training plan will be drawn up to promote and assist with internal mobility.

Saint-Auban (Alpes-de-Haute-Provence): specialisation of the site around its strong points and closure of activities making significant losses
The activities which most seriously penalise the site's competitiveness, i.e. mercury electrolysis, monochloroacetic acid, trichloroethylene and VCM (vinyl chloride monomer), which are essentially responsible for the site's Euro 30 M operating loss in mid-cycle, would be shut down in the first quarter of 2006.
Meanwhile, the future of the Saint-Auban site would be secured by specific investments designed to restore its long-term competitiveness, amounting to a total of Euro 35 M. The refocusing of the factory on the production of PVC specialty resins and copolymers would be confirmed by an increase in the plants' capacities, with Euro 13 M already invested in the last two years. A new electrolysis room operating the membrane process (with a 20,000 tpa capacity) would be set up to produce the necessary chlorine feedstock for the manufacture of T111 (trichloroethane 1,1,1), and thereby maintain sourcing in France for the Pierre-Benite (Rhone) fluorochemicals activities.
The Saint-Auban site currently employs 713 people. This project would result in the loss of 380 jobs, and would include an internal mobility plan available within the Group, as well as a voluntary early retirement plan entirely financed by the Company and potentially concerning 202 people. Arkema will make no personnel redundant, by putting in place the necessary resources to assist everyone concerned in finding a solution as soon as possible.
In order to offset the job losses resulting from this reorganisation, a support plan for the local economy would be launched with the aim of creating 400 new jobs over four years.

Saint-Fons (Rhone): recentring on PVC production
The activity of the Saint-Fons factory would be recentred on the production of general purpose PVC, with the closure of the vinyl compounding plant; vinyl compound production would be reallocated to the Company's other plants, essentially the Resinoplast site in Reims (Marne). A Euro 4.5 M budget would be set aside for the consolidation of the PVC and C-PVC production plants, in particular with the construction of a new control room.
In addition, production at the organic peroxide plants would shut down.
Consequently, the configuration of the site's central services would be altered to reflect its new manufacturing base.
The site currently employs 305 people. This project would result in 76 job losses, and would include an internal mobility plan available within the Group, as well as a voluntary early retirement plan entirely financed by the Company, and potentially concerning 57 people.

Balan (Ain): modernisation of PVC production plants
The PVC production plants at the Balan factory would see their production capacity increased to 330,000 tonnes per year thanks to Euro 4 M capital expenditure. The closure of the site's oldest plant and the transfer of its productions to the newest and most efficient plant should help improve competitiveness very significantly whilst accommodating environmental considerations. The consolidation of the activities at the Balan plant cannot ignore the highly competitive economic parameters prevailing in the PVC resin sector. It must therefore include a reduction in the site's operating costs through changes to its central services.
The site currently employs 265 people. This project would result in the loss of 30 jobs, and would include an internal mobility plan available within the Group, as well as a voluntary early retirement plan entirely financed by the Company, and potentially concerning 20 people.

Jarrie (Isere): restoration of the site's competitiveness
The Jarrie plant benefits from sound integration of its products downstream from electrolysis. Initiatives to optimise its organisation, in particular by pooling the control rooms of the methyl chloride, engineering fluids and bleach plants, with Euro 1.5 M capital expenditure, should allow the site's overall competitiveness to be restored. The new control room shared by all three plants would thereby benefit from the latest safey standards.
Euro 5 M capital expenditure would also be specifically allocated to improving the site's environmental performance.
The plan also includes the closure of bromochemicals manufacture, a fringe activity in relation to the site's productions, which would result in the pilot plant concerned (Small Batch Production Plant) being mothballed until other potential productions take its place.
The site currently employs 583 people. This project would result in the loss of 51 jobs, and would include an internal mobility plan available within the Group, as well as a voluntary early retirement plan entirely financed by the Company, and potentially concerning 39 people.

Fos-sur-Mer, Lavera, Berre (Bouches-du-Rhone): increase in production capacities
Expansion investments totalling Euro 28 M would be allocated to the Fos-sur-Mer and Lavera production facilities, which operate some of the most efficient chlorochemicals plants in Europe, to increase significantly their chlorine and vinyl chloride production capacities. The plan would also include an increase in the capacity of the general purpose PVC plant in Berre through Euro 7 M capital expenditure on the site.

Pierre-Benite (Rhone): improvement of WACR production process
The Pierre-Benite site would benefit from Euro 2 M capital expenditure aimed at improving the manufacturing process for WAC, an aluminium polychlorosulphate used in the treatment of drinking water.

Platts 2006/3/2

Arkema on schedule to close St Auban, France, VCM unit end March

The closure of Arkema's 125,000mt/yr St Auban, France, vinyl chloride monomer unit is on schedule for the end of March, a company source confirmed Thursday.
Plans to consolidate its vinyl products business segment were originally posted by Arkema at the beginning of last year. St Auban would close, the company said, as it focused on expanding profitable and efficient plants while closing older and structurally loss-making facilities.
The polyvinyl chloride unit at the site has already been switched from a suspension to a specialty PVC operation, producing paste and co-polymer grades. Suspension PVC production has been transferred to Arkema's largest manufacturing site at Balan, the company source said.

2006/9/25 Arkema

Arkema doubles high performance polyamides capacity in China, to be operational by September 2007

Arkema has announced that it will double its high performance polyamides capacity at its Changshu site, China. This increase will come on stream by september 2007. 江蘇省常熟市

According to Lando Ferretti, Business Unit Director, Technical Polymers : “The expansion of our Changshu site clearly confirms our long-term commitment to our customers and to the market in China and Asia. This capacity increase will play a great part in reinforcing our leadership position in the air brake and fuel line markets for transportation, and in textile applications. It will bring our customers a superior regional service from our competitive base in Changshu”.
Moreover, and without waiting for this increase of capacity, Arkema announces that it will start the production of Rilsan(R) on this site in September 2006 in order to meet the increase in local demand.

Arkema manufactures 6 high performance polyamides product lines: Rilsan(R) granules and Rilsan(R) fine powders, Pebax(R), Platamid(R), Orgasol(R) and Orgalloy(R). Arkema produces two of these product lines at its Changshu facility: Platamid(R) copolyamides and Rilsan(R) polyamides (from September 2006).

Rilsan(R) polyamide-11
PEBAX(R) ナイロン系エラストマー樹脂
PLATAMID(R) copolyamide hotmelts
Orgasol(R) Ultrafine Polyamide Powders
Orgalloy(R) Nylon 6 Alloy

With global brands like Rilsan, Pebax and Platamid, unique products like Rilsan polyamide 11 and leading capacities in Rilsan polyamide 11 and 12, Arkema’s Technical Polymers business unit differentiates itself in the industry by providing its customers with global coverage and superior regional service from production facilities and research sites in Europe, Asia, and the USA.

2007/1/22 Arkema

Arkema and Essar announce the signing of a Memorandum of Understanding for the production of acrylic acid in India.

Arkema, a leading French chemical company and Essar Chemicals Ltd., part of India's Essar Group, have announced the signing of a Memorandum of Understanding to study the feasibility of a 50/50 joint venture in India for the production and commercialization of acrylic acid and esters.

For Arkema, this will be in line with its strategy to further develop its acrylics business especially in fast growing regions. For Essar, the venture would signify adding value to streams coming out of its world-class oil refinery recently commissioned in India.

The new world-scale production plant would come on stream in 2010. It would be located at Vadinar in Gujarat Province on India’s Northwest coast, downstream from the recently commissioned Essar refinery, using propylene as feedstock.

“This unit should be the first acrylic acid plant to be built in India and would serve the fast growing acrylics market in this part of the world. Its location would be ideal to supply both the Indian and the Asian markets”, comments Henri Dugert, Group President of Arkema’s Acrylics Business Unit.

Anshuman Ruia, Director, Essar Group, said “Essar Group is firmly on the path of expanding value chain in all their businesses and entry into this business would further enhance potential of Essar Oil’s refinery from where main feedstock propylene will be supplied for acrylic complex. Joining hands with Arkema, one of the premier companies in the world in this business will provide strategic leverage in Indian chemical market to both companies.”

A world-class chemical concern, Arkema combines three strategically related, integrated businesses: Vinyl Products, Industrial Chemicals and Performance Products. With operations in more than 40 countries and 18,400 employees, the company reported revenue of Euro 5.7 billion in 2005. Leveraging six research centers in France, the United States and Japan and internationally recognized brands, Arkema holds leadership positions in each of its principal markets.

With two existing production sites in Carling (France) and Bayport (USA), Arkema intends with this new project to reinforce its position as a global player in acrylic monomers whose main applications are paints and coatings, superabsorbents, water treatment, and the paper and textile industries.

Essar Group is one of the fastest growing business groups in India. The Group’s businesses span the core and infrastructure segments of the economy - steel, oil and gas, power, mobile telecom, shipping and construction, and has approximately 20,000 employees.

Essar Chemicals Limited is part of Essar Global Limited, an investment arm of Essar Group. This company will be a vehicle to enter into value added chemicals business and is currently evaluating various options available based on feedstock streams from Essar Oil Limited’s refinery at Vadinar, near Jamnagar in Gujarat.

2007/9/24 Arkema

Arkema invests for Kynar® Fluoropolymer production in China

Arkema announces its intention to expand the global production of Kynar® polyvinylidine fluoride (PVDF) by investing in a new facility in China.

The proposed Kynar® production facility, including VF2 monomer, will be built on an existing Arkema manufacturing site at Changshu, just north of Shanghai. Detailed engineering for the facility will start in the first quarter of 2008, for a startup planned in 2011.

 "Our decision to invest in China is based on the expanding Asian construction market and on our plan to grow the Kynar® family of products into new construction and industrial applications. The Changshu site manufactures products for a number of Arkema businesses, including Fluorochemicals and Technical Polymers, making it an ideal location for this operation", said Lando Ferretti, Arkema Group President for Technical Polymers.

This new Kynar® PVDF project in Asia will provide Arkema with full manufacturing capabilities in the three main regions of the world. Arkema already operates Kynar® facilities in Pierre-Bénite (France) and in Calvert City (USA) where a further 25% capacity expansion will be completed during first quarter of 2008.

2007/9/24 Arkema

Arkema doubles PVC Heat Stabilizer plant in Beijin

Arkema is investing in a major expansion of its PVC heat stabilizer production facility in Beijing (China), to respond to the strong growth of the construction and packaging markets.

The expansion will double the capacity of the site to 12,000 tons-per-year for production of the full range of tin-based heat stabilizers, and make it the single largest production facility for tin stabilizers in Asia. The extension is scheduled for completion in the first quarter of 2008.

 "As Asia is our fastest growing market, this investment reinforces our commitment to serve our customers in the PVC building, construction and packaging markets", says Rich Rowe, Group President of the Functional Additives Division.

The Beijing plant serves Arkema's customers throughout Asia. Coupled with Arkema's strong capability for innovation and its technical expertise, this capacity increase will further strengthen the Company's position as the market leader on the Asian continent.

Organotin stabilizers are widely used in PVC applications: packaging materials such as PVC bottles, construction materials (window profiles, vinyl doors, vinyl flooring, and pipe products). They impart good color and thermal stability as well as long-term weathering resistance.

A global chemical player, Arkema consists of 3 coherent and related business segments: Vinyl Products, Industrial Chemicals, and Performance Products. Present in over 40 countries with 17,000 employees, Arkema achieves sales of 5.7billion euros. With its 6 research centers in France, the United States and Japan, and internationally recognized brands, Arkema holds leadership positions in its principal markets.

2008/3/5 Sartomer

Sartomer Company Opens China Manufacturing Plant
Nansha, China, site will supply Asia, Europe and United States

Global specialty chemicals manufacturer Sartomer Company today announced the opening of a new manufacturing plant in Nansha, in the Guangzhou province of China. The facility will manufacture specialty acrylate monomers and oligomers used as raw materials in products such as paints, inks, coatings, adhesives, circuit boards, flooring, CDs and DVDs. Sartomer will sell materials manufactured at the new plant to customers in Asia, Europe and the United States.
“The Nansha project is Sartomer’s first major investment in China,” said Dr. Luigi Colantuoni, president of Sartomer. “We are proud that the production process used in China is extremely clean and environmentally friendly. It follows the same high environmental standards that are currently in place at our other global sites in the United States and Europe.”
The entire facility models Sartomer’s plant in Chatham, Va. The new plant includes lab space, offices, conference rooms and features integrated computer-based technology for process monitoring and control. The site also features state-of-the-art emergency response capabilities and a Modern Safety ManagementR system. It will employ about 100 people when fully staffed.
Sartomer Company, part of Total's Chemicals branch, is a U.S.-based manufacturer of specialty chemicals. Headquartered in Exton, Pa., Sartomer provides a variety of specialty chemicals designed to enhance processing and performance characteristics in coatings, inks, elastomers, adhesives, sealants, composites, and other demanding applications. The company's product offering includes more than 700 monomers and oligomers, polybutadiene resins, styrene maleic anhydride resins, and other specialty chemicals.

2009/2/6 Arkema

Arkema announces the acquisition of American company Oxford Performance Materials

As part of its strategy to further expand in performance materials, Arkema announces the acquisition of the US company Oxford Performance Materials, Inc. (OPM), maker of polyether ketone ketone ultra-high-performance technical polymers marketed under the brandname OXPEKK(R), with sales of the order of $ 2 M.

“ Arkema has had a long-standing interest in ultra-high-performance polymers that offer outstanding technical differentiation, opening up the way for major innovations for our customers “, said Thierry Le Henaff, Arkema Chairman and CEO. “ We are delighted to welcome OPM’s teams within Arkema. I firmly believe that this new activity has a huge growth potential. ”

“ OPM has spent nearly ten years perfecting the polyethyl ketone ketone (PEKK) molecule. Now with Arkema, we can broaden our industrial strategy and pursue more market opportunities. OPM’s single-minded focus on PEKK and Arkema’s technical polymer competencies and capabilities will be a formidable combination offering highly promising prospects for the development of ultra-high-performance polymers ” said Scott DeFelice, OPM President and CEO.

OXPEKK polyether ketone ketone products feature outstanding characteristics, in particular excellent high-temperature and chemical resistance, unmatched abrasion resistance, and natural flame retardancy. They already have many applications, including in aerospace, long-term medical implants, and down-hole equipment for the oil and gas industries.

The addition of OXPEKK polyether ketone ketone products to Arkema’s already diverse portfolio complements a set of high-performance materials that include Kynar(R fluorinated polymers, Altuglas(R) PMMA, Rilsan(R) polyamides, Pebax(R) thermoplastic elastomers, as well as Nanostrength(R) and Graphistrength(R) nanostructured materials.