At a recent Strategy Update meeting, Arkema presented its ambition to become a world leader in specialty materials realigned around three coherent businesses: Adhesive Solutions, Advanced Materials, and Coating Solutions. In the context of COVID-19, Arkema also provided an update on the management and the consequences of this unprecedented health crisis.
Since 2006, Arkema reports that it has undertaken an in-depth transformation that has enabled it to progressively develop leading positions in specialty materials through targeted investments, an innovation policy focused on the major sustainable development trends, and proactive portfolio management. These activities now account for almost 80% of its sales.
Today, Arkema is entering a new phase in this transformation based on the three coherent and complementary divisions focused on specialty materials. The company reports that it enjoys a unique positioning around those three growth platforms, combining in-house innovation expertise, strong commercial and industrial synergies, and a common approach to serving customers in sustainable and growing markets. Thus, the group has decided to align its organization and reporting with this vision.
In addition, Arkema has announced an Intermediates division, consisting of MMA/PMMA, Fluorogases, and Asia Acrylics, consolidating activities with more volatile results and for which the group will implement differentiated strategies. In particular, the group will undertake a review of its strategic options for MMA/PMMA, explore possible alternatives to minimize its exposure to the most emissive applications of its Fluorogases, and rebalance its Asia Acrylics business between upstream and downstream.
By 2024, Arkema aims to generate sales of €10-11 billion (approximately $10.9-12 billion) for the specialty materials businesses. To carry through this latest stage in its development, the group intends to build on its innovation projects and investments in major projects, such as the expansion of its specialty polyamides in Asia, which will help meet the challenges of material lightweighting, 3D printing, new energies, and energy efficiency in buildings. Arkema also intends to continue playing an active part in the consolidation of the adhesives market.
In the short term, in the current and unprecedented context of COVID-19, the group is implementing crisis management measures to ensure the protection of its employees’ health as a priority, adjusting its supply chain, and adapting its production facilities to best manage potential disruptions and ensure the continuity of supply to its customers in essential markets. The group continues to monitor its cash generation and is taking active steps to reduce its investments and fixed costs from the levels initially forecast for 2020.
Additional details are available at www.arkema.com/en.