Arkema Founds Chinese JV With Jurong, Eyes Acquisitions
Arkema and China's leading acrylic acid producer Jurong Chemical have formed a joint venture, Sunke, in which Arkema will have the undisclosed majority stake. The new company will consist of the assets of Jurong's acrylic acid production at Taixing, China, started up in 2012.
The French chemical producer said the deal, which follows its recent start-up of a coating resins plant at Changsu, China, will enable it to accelerate the development of its Coating Solutions segment in China and in Asia and supply customers in fast-growing markets such as superabsorbents, paints, adhesives and water treatment.
Arkema said the joint venture also represents a new milestone in its growth strategy, toward achievement of its 2016 targets, in particular by strengthening its position in high growth markets. Finally, it provides the company with a "highly competitive acrylic monomer industrial footprint in Asia."
With an initial investment of $240 million in a 160,000 t/y production train, Arkema will have an option to immediately double output to 320,000 t/y at a cost of $235 million. CEO Thierry Le Henaff said the company now has integrated acrylic acid production in Asia, as well as the U.S., where it has facilities at Clear Lake, Texas, as well as in Europe, where it produces at Carling in eastern France.
