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Home  > Markets & companies  > Raw materials market  > Arkema acquires Jurong Chemical's acrylic...

Thursday, 24 October 2019
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Markets & companies, Raw materials market

Arkema acquires Jurong Chemical's acrylic acid production site to form joint venture in China

Monday, 27 January 2014

Production capacity for Arkema initially will be 160,000 t/year for a USD 240 million investment, with the option to raise it without delay to 320,000 t/year for a further USD 235 million investment.

With this strong industrial base in Asia, a region accounting for 50 % of the global acrylics market, Arkema will be in a position to support the growth of its acrylic monomer customers operating in the region, while securing feedstock for its downstream acrylics activities. Source: Frank Eckgold/Fotolia.com
With this strong industrial base in Asia, a region accounting for 50 % of the global acrylics market, Arkema will be in a position to support the g...

Arkema and Jurong Chemical have announced the creation of Sunke, a joint venture in which Arkema will have a majority interest, comprising the assets of Jurong's acrylic acid production site in Taixing opened in 2012. This acquisition, in the wake of Arkema's recent startup of its coating resins and Coatex production plants on the Changshu site, will enable the Group to accelerate the development of its Coating Solutions segment in China and in Asia; in particular in fast-growing markets such as superabsorbents, paints, adhesives, water treatment, etc.

Commissioned in 2012, the Taixing site is a modern and competitive industrial complex. 200 km west of Shanghai, on the banks of the Yangtze River, it benefits from an excellent location both to secure its raw materials supply and to serve its customers in China and in Asia. China's leading acrylic acid production site, it currently has a 320,000 t/year installed capacity, with two world-scale production lines.

The competitiveness of this site will be further strengthened by the commissioning of a third line with a 160,000 t/year capacity, due to start up in 1st quarter 2015. With a 480,000 t/year capacity, the Taixing facility will thus become one of the world's largest acrylic acid sites. When the deal closes later this year, Arkema will have access to half of the site's installed production, namely 160,000 t/year, for a USD 240 million investment. When the third line comes on stream, Arkema will have the option to access 2/3rd of the site's acrylic acid installed capacity, namely 320,000 t/year, for an additional USD 235 million investment. In a full year, sales corresponding to both these lines are estimated at around USD 600 million. Finally, Arkema has a further option in the next 5 years to potentially acquire the remaining third of the acrylic acid production capacities, at a cost of USD 165 million.

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