Arkema to Divest South African Coatings Business

Declaring the activities to be non-strategic, French chemical producer Arkema plans to sell its two coatings subsidiaries in South Africa to Ferro Industrial Producers, a distributor of coatings and materials for composites. Financial details of the deal, which could close in Q2 if antitrust authorities approve, were not undisclosed.

Together, the two subsidiaries, Arkema Resins and Harveys Composites, employ 125 staff and reported turnover around €45 million in 2012. The French company said it would continue to sell into the South African coatings markets through licensing and distribution agreements with Ferro.