Arkema’s Option to Lift Share of Chinese Firm Extended
Arkema has extended until January 2016 its call option to increase its share in Sunke, the acrylics joint venture with Jurong Chemical in China.
Exercising the option would give the French chemical producer the third of the jv it does not yet own. Under the terms of the agreement signed in January 2014, Arkema was initially expected to exercise of this option during the first quarter 2015.
With the full takeover of the company established in 2014, Arkema would have access to its 320,000 t/year acrylic acid production capacity.
The manufacturing joint venture owns and operates acrylic acid and butyl acrylate productions lines in the People's Republic's Taixing, Jiangsu Province.
Financial terms of the initial agreement signed in January 2014 have been adjusted to reflect the extension of the option, and all conditions remain unchanged, the jv partners said.
Arkema's final option to acquire the remaining share capital remains unchanged and can be exercised until early 2020.
In the interim, the acrylics producer will be jointly operated by the two companies, and production levels will be adjusted to market conditions.
