Arkema Closes Acquisition of Hipro Polymers and Casda Biomaterials
Arkema has finalized the acquisition of Chinese companies Hipro Polymers, a producer of specialty biosourced polyamides 10.10, and Casda Biomaterials, the world's leading producer of sebacic acid processed from castor oil.
"This acquisition represents a large development potential for Arkema. It offers significant growth drivers for our high-tech polyamides, and will help us become the only chemical manufacturer in the world to offer the full range of polyamides 10, 11 and 12. Positioned in the green chemistry sector, this acquisition of companies in China fits in well with the growth strategy conducted by the Group in the last 5 years," stated Thierry Le Hénaff, Arkema Chairman and Chief Executive Officer.
By adding Hipro Polymers' PA10.10 to its existing high performance polymer portfolio, Arkema is strengthening its world leading position in specialty biosourced polyamides, which currently enjoy 15 to 20% annual growth. Arkema's strong reputation and application know-how in end-markets will help speed up the development of Hipro Polymers, in particular in transportation (automotive, trucks), renewable energies, and electronics. Hipro Polymers' site, near Shanghai, will see its polyamide production triple from mid-2012.
With Casda Biomaterials, the world's leading producer of sebacic acid, Arkema benefits from integrated feedstock for the production of PA10.10, and, through this strategic intermediate, will supply diversified world markets such as lubricants, plasticizers and corrosion-inhibiting additives, as well as the fast-growing biosourced and biodegradable polymers market. Casda Biomaterials has been operating a new production line since 2010, using a reliable and competitive process, located in a recent industrial zone south of Beijing.
Both companies report sales estimated at $230 M for 2011, and employ 750 people on two sites in China.