Arkema

Arkema S.A.

Company type	Public (S.A.)
Industry	Specialty chemicals
Predecessor	Atofina
Founded	October 1, 2004 (2004-10-01), France
Founder	Total (chemical division restructuring)
Headquarters	La Défense, Paris , France
Area served	Worldwide (55 countries)
Products	Specialty materials: adhesives, advanced materials, coatings, chemical intermediates
Owner	Individual investors (~94%), employees (~5.5%), institutional investors (e.g. FMR LLC)
Number of employees	21,150 (2024)
Parent	None
Website	www.arkema.com

Arkema S.A. is a multinational manufacturer specializing in specialty materials, publicly traded and headquartered in La Défense, near Paris, France. The company is organized into three main specialty materials sectors: adhesives, advanced materials, and coatings, complemented by a chemical intermediates division.

Established in 2004 as part of Total's chemical business restructuring, Arkema went public on the Paris stock exchange in May 2006. By 2024, it reported revenues of €9.5 billion. Arkema’s operations span 55 countries, employing 21,150 individuals, supported by 17 research centers and 157 manufacturing facilities.

History

Although Arkema was officially created during Total's chemical reorganization in 2004, its roots extend back several decades.

Origins and development

In 1971, the chemical operations of Elf and Total merged to form Aquitaine Total Organico (ATO). That same year marked the foundation of Produits Chimiques Ugine Kuhlmann (PCUK). The joint venture was renamed ATO Chimie in 1973. In 1980, Chloé Chimie was established with ownership split between Elf (40%), Total (40%), and Rhône-Poulenc (20%) to oversee Rhône-Poulenc’s chlorochemical activities. By 1983, Total divested its shares in Chloé Chimie to Elf; subsequently, chemical production was centralized under Atochem, Elf’s subsidiary that incorporated ATO Chimie, Chloé Chimie, and most PCUK operations.

Elf expanded in 1989 by acquiring Pennwalt Corporation and merging it with M&T Chemicals and Atochem Inc., forming Atochem North America Inc. Pennwalt’s lineage traces back to The Pennsylvania Salt Manufacturing Co., founded in 1850, which evolved through various mergers into Pennwalt Corp by 1969.

In 1990, French chemical production underwent further consolidation: Orkem’s petrochemical, styrenic, fertilizer, and acrylic units were integrated into Atochem; specialty areas such as resins and paints were assigned to Total. Additionally, Montedison’s organic peroxide business was acquired. Atochem became Elf Atochem in 1992 and later merged with Total’s chemical assets to form Atofina following TotalFina’s acquisition of Elf in 1999.

Establishment, independence, and public listing

In February 2004, Total restructured its chemical division by creating Arkema on October 1st through asset transfers from the dissolved Atofina subsidiary. The name Arkema was chosen to signify its identity as a chemicals producer. It was organized into three divisions: vinyl products (including chlorochemicals, PVC, vinyl compounds, pipes), industrial chemicals (covering acrylics, fluorochemicals, hydrogen peroxide, PMMA, thiochemicals), and performance products (such as additives, organic peroxides, agrochemicals, urea-formaldehyde resins).

Arkema became an independent publicly traded company when it was spun off from Total on May 18, 2006 with its initial listing on the Paris stock market. By June 2011, Arkema had been included in the CAC Next 20 French stock index.

Acquisitions, divestitures, and strategic shifts

In 2007, Arkema divested its agrochemical unit Cerexagri to United Phosphorus and sold urea-formaldehyde activities to Hexion while acquiring Coatex, a specialty acrylic polymer company.
In 2010, it purchased Dow's acrylic assets located in the United States.
In 2011, Arkema acquired coating resin businesses Cray Valley and Sartomer from Total.
By 2012, acquisitions included Chinese bio-polyamide producer Hipro Polymers and Casda Biomaterials focused on plant-based raw materials.

In July 2012, facing profitability difficulties with its vinyl products segment, Arkema sold this division to the Klesch group for a nominal €1. To facilitate the business turnaround, Arkema paid €100 million and assumed €470 million of debt. To mitigate employee concerns regarding potential layoffs, two €20 million trust funds were created to secure compensation and protect workers’ rights. Following this sale, Arkema concentrated solely on specialty chemicals structured into three sectors: High Performance Materials, Industrial Specialties, and Coating Solutions—each contributing roughly one-third of total revenue.

In 2015, Arkema acquired Bostik adhesives from Total and formed a partnership with South Korea's CJ Group to manufacture L-methionine in Malaysia.

In 2019, Sartomer earned an Innovation Award from the Adhesives and Sealants Council for developing a resealable electron beam-curable adhesive.

In 2020, the Plexiglas (PMMA) business was sold to Trinseo for $1.1 billion.

In 2021, Arkema expanded further by purchasing Ashland's Performance Adhesives segment for $1.65 billion.

In 2022, the acquisition of South African adhesive solutions provider Permoseal enhanced Arkema's footprint within the regional adhesives market.

Adhesive Solutions

Established in 2020 through the transfer of Bostik from the High Performance Materials division.

Advanced Materials

This division comprises specialty polyamides, fluoropolymers (PVDF), molecular sieves used for filtration and adsorption, as well as organic peroxides. Prominent brands include Rilsan (polyamide 11), Luperox (organic peroxides), Kynar (PVDF), and Siliporite (molecular sieves).

Coating Solutions

Beginning with acrylic monomers, the Group has broadened its portfolio to include coatings such as waterborne and solvent-based resins, powder coating resins, and additives from Arkema Coating Resins; rheology modifiers for waterborne coatings from Coatex; and photocurable resins tailored for optics, graphic arts, and electronics produced by Sartomer. Notable brands are EnVia, Rheotec, and Sarbio.

Intermediates

This segment encompasses thiochemicals utilized in animal nutrition and natural gas odorants, fluorochemicals applied in refrigeration, air conditioning, and foam blowing agents, along with hydrogen peroxide used in pulp and textile bleaching, chemical synthesis, and water treatment. Key brands include Albone (hydrogen peroxide), Paladin (DMDS fumigant), and Forane (refrigerants).

Subsidiaries

• Bostik, a specialist in adhesive technologies.

• Coatex, manufacturer of rheology additives for aqueous formulations with production sites located in France, the Netherlands, the United States, Korea, China, and Brazil. Its portfolio includes Rheocoat, Coadis, Rheocarb, Ecodis, Viscoatex, and Coapur.

• MLPC International, dedicated to carbon sulfide, cyanogen chloride, amine chemistries, and rubber vulcanizing agents. Founded in 1926, it operates facilities in Lesgor and Rion-des-Landes in southwestern France.

• Sartomer, supplier of specialty acrylates designed for ultraviolet curing applications.

• Den Braven, producer of sealants primarily used in insulation and construction sectors.

• Casda, manufacturer of sebacic acid sourced from castor oil.

Locations

Arkema manages 144 manufacturing sites across the globe: 61 located in Europe, 43 in North America, 40 across Asia, with additional facilities elsewhere. The company also operates marketing subsidiaries in approximately 40 countries.

The firm maintains 13 research centers: seven situated in France (Lacq; Serquigny; Cerdato; Carling; Genay; Pierre-Benite; Verneuil), three within the United States (Cary, North Carolina; Wauwatosa, Wisconsin; King of Prussia, Pennsylvania), and two based in China (Shanghai and Changshu).

Turnover, operations, and workforce distribution by region

North and South America	31% of revenue 43 plants
Europe	36% of revenue 61 plants
Asia and other regions	33% of revenue 40 plants

Sales by region

Europe represents the largest share of Arkema’s revenues at 36%, followed by North and South America contributing 31%. Asia—including a significant presence in China spanning over thirteen years—accounts for 33% of total sales.

Explosion at Crosby, Texas facility

In August 2017, flooding caused by Hurricane Harvey compromised the refrigeration units at Arkema's Crosby, Texas plant, endangering the stability of organic peroxide compounds. The company issued warnings about the risk of possible explosions. On August 31, explosions took place as containers holding burning organic peroxide ruptured, leading authorities to enforce a 1.5-mile evacuation perimeter around the plant.

Violation of EU antitrust regulations

Total, Elf Aquitaine, and Arkema faced scrutiny by the European Commission for their participation in an unlawful cartel impacting the hydrogen peroxide and sodium perborate sectors. Arkema's predecessor entities, Atochem and Atofina, were responsible for these violations from May 1995 through December 2000. In May 2006, Arkema incurred a €78 million fine for infringing EU antitrust rules.

Research and innovation

Arkema allocates roughly €150 million each year toward research and development activities, with half of this budget focused on green chemistry initiatives. The company employs more than 1,200 scientists dedicated to advancing ultra-high performance polymers and creating sustainable development technologies.

Financial results

Arkema reported total revenues of €7.9 billion, segmented as follows:

• Advanced Materials: 32%
• Adhesive Solutions: 25.5%
• Coating Solutions: 24.5%
• Intermediates: 18%

As of 2020, net debt amounted to €1.9 billion.

Ownership structure

By December 31, 2010, principal shareholders holding at least a 5% stake included Greenlight Capital (5.5%), Dodge & Cox (5.2%), and Groupe Bruxelles Lambert (10%).

From January 1, 2012 onwards:

• FMR LLC (Fidelity Management & Research) disclosed ownership exceeding 5% (August 2012);
• Groupe Bruxelles Lambert divested its entire holding (March 2012);
• Approximately 94% of shares are owned by individual investors;
• Employees of the group possess close to 5.5%.