Arkema Boosts Adhesives with China Buy
Arkema is buying Shanghai Zhiguan Polymer Materials (PMP), a Chinese company that specializes in reactive hot-melt polyurethane (HMPUR) adhesives for the consumer electronics market. Financial terms of the deal, which is scheduled to close this quarter, were not disclosed.
PMP’s adhesives are used in the bonding of mobile phones, tablets, laptops and connected objects. The Shanghai-based firm generates more than €1 million in annual sales.
Arkema said the acquisition is in line with the strategy of its adhesive solutions arm Bostik to build a strong position in the attractive engineering adhesives market and to accelerate development in the fast-growing electronics market, especially in Asia.
With PMP’s “solid positions” in the consumer electronics market, Bostik will strengthen its portfolio of technologies in engineering adhesives, where the group said it already has robust know-how in cyanoacrylate, methyl methacrylate (MMA) and UV technologies, developed through the acquisitions of Afinitica and Nitta in 2018 and AEC Polymers in 2013.
Arkema said the bolt-on acquisition has strong complementary technological and commercial assets, offering many development synergies that will contribute to substantially accelerating Bostik’s expansion in the Asian consumer electronics industry.
Also in China, Arkema last month upped its fluoropolymer expansion plans because of strong demand for lithium-ion batteries. It will now increase PVDF output by 50% instead of 35%, accelerating its development in the country’s battery business, as well as supporting significant growth in the water filtration, specialty coatings and semiconductor sectors.
Author: Elaine Burridge, Freelance Journalist
