Against the backdrop of a cooling Chinese economy, French chemical producer Arkema has decided against increasing its stake in Taixing Sunke Chemicals, the joint venture that produces acrylic acid and butyl acrylate at Taixing, China.

The expansion would have added 160,000 t/y of acrylic acid capacity.

Arkema said it decided not to exercise this option to buy more shares, when it came due at the beginning of the year, as the financial terms of the option no longer reflect current market conditions for acrylics in China.

The French company added that it will retain its initial rights to acrylic acid and thus support the development of its downstream acrylic activities in Asia and its customers’ growth in the region.

Part of the funds freed up by the cancellation of expansion plans may be invested in bolt-on acquisitions to strengthen its High Performance Materials segment, Arkema said.