Arkema Sells Part of Its Plastic Additives Business to Indian Group Praana
French chemical company Arkema has announced a divestment plan to the Indian group Praana for some of its impact modifiers and processing aids activities, additives used in the manufacturing of PVC and technical plastic products. This move is part of the group's strategy to focus on its core activities.
Details of the Divestment
The project involves the global activities of Methyl Methacrylate Butadiene Styrene (MBS) copolymers as well as the European and Asian scope of Acrylic Impact Modifiers (AIMPA), according to the press release. These activities, attached to the Coating Solutions segment, generated a revenue of 44 million euros in 2024. The transaction includes the divestment of the Vlissingen production site in the Netherlands, which employs 50 people. However, Arkema will retain the Mobile plant in the United States and all its American activities in AIMPA. These plastic additives are used to enhance impact resistance and optimize the productivity of PVC extrusion and molding processes and certain composites aimed at the construction and packaging sectors.
Profile of the Buyer: Praana Group
The Indian group Praana, the buyer of these activities, is described as a leading producer of specialty chemicals and composite materials. It encompasses several companies, including Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals, and 3B Fibreglass, offering solutions for the construction, textiles, automotive, personal care and maintenance products industries, as well as various industrial markets. The completion of this transaction is scheduled for the first quarter of 2026, pending consultation with the employee representative bodies in the Netherlands.
Strategic Refocus of Arkema
This divestment is part of Arkema's dynamic portfolio management and its focus on strategic activities with higher added value in specialty materials, according to the group. Arkema is currently organized around three segments dedicated to specialty materials, namely Adhesives, Advanced Materials, and Coating Solutions, as well as an Intermediates segment. These three segments represent 92% of the group's revenue in 2024. The group reported a revenue of approximately 9.5 billion euros in 2024 and employs 21,150 staff across nearly 55 countries.
