Annual Report 2011 - Analist.be

Overview of the activities - ArkemaFinally, beginning of 2012, Arkema hasstrengthened its position in bio-sourcedpolyamides in China with the acquisitionof the companies Hipro Polymers andCasda Biomaterials. This operationallows Arkema to enhance its specialtypolyamide range, to reinforce its presencein Asia and to strengthen its position ingreen chemistry. These companies haveachieved in 2011 combined sales ofaround USD 230 million.Moreover, Arkema announced on23 November 2011, a project to divestits Vinyls Products segment to theKlesch group. This project entails thesale of all the French and Spanish assetsdirectly relating to the chlorine and itsderivatives businesses as well as all thedownstream businesses in the world(compounds, pipes and profiles).The closing of the operation is expectedmid-2012 subject to the legal information/consultation process of the relevantworkers councils currently ongoingand to the approval by the antitrustauthorities. In 2011, these businessesachieved sales of EUR 1,090 million andnet loss of EUR - 82 million.In terms of organic growth, Arkemacontinued to expand in Asia withthe start-up on its industrial platformin Changshu, China, of two newproduction plants:• One of fluoropolymer started to meetthe growing demand of the highperformance industrial coatings, deepoffshore and emerging applicationssuch as lithium-ion batteries,photovoltaics and water treatment;• One of rheological additives(dispersants, thickeners), started inAugust 2011, which enables Coatex tohave a production capacity dedicatedto Asian markets for paints andcoatings, concrete, paper and mineralprocessing.Several projects have also beenannounced such as the capacityincreases of polymers and fluorogason Changshu site and the construction,in Malaysia, of a thiochemicals platformand of a bio-methionine plant inpartnership with the Korean companyCJ Cheil Jedang, which start-up isexpected late 2013. This last projectis the largest industrial investment of thegroup (around USD 200 million).Outlook2012 should be another year ofsignificant change for Arkema with theintegration of the acquisitions recentlyfinalized, the start-up of new units orcapacity expansions in Asia and thebeginning of the construction of thethiochemicals plant in Malaysia. Theconsultation process of workers councilson the project to divest Vinyls businessto group Klesch will continue and theclosing is expected mid 2012.Growth in Asia should remain welloriented notably in China. Demandimprovements are perceivable in theUnited States and Europe should remainchallenging especially in construction.Raw materials are expected to remainvolatile at high levels.While remaining cautious about 2012macro environment, Arkema is confidentin its strengths and will continue tocombine strict management of thecompany with targeted growth.Taking into account the 2011performance and the portfoliorepositioning achieved since spin-off,Arkema upgrades its long-term targetsand aims to achieve sales ofEUR 8 billion and an EBITDA ofEUR 1,250 million in five years time(2016) while maintaining its gearing ataround 40%. This growth would comehalf from organic growth and half frombolt-on acquisitions. These targets havebeen defined in normalized environment.60 Annual Report 2011