Arkema SA · EURONEXT:AKE
Arkema SA — Merger or Acquisition (2014)
17 slides from Arkema SA's merger presentation, 2014
Slide 1: Acquisition in acrylics in China: Arkema joins forces with Jurong Chemical
Acquisition in acrylics in China Arkema joins forces with Jurong Chemical
Slide 2: Executive summary
Executive summary INNOVATIVE @& CHEMISTRY
Slide 3: Reminder of Arkema's mid-term growth strategy
Reminder of Arkema’s mid-term growth strategy (2016 Ambition presented at 2012 Investor Day) Sales by region Broaden reach in higher growth countries 30% with a balanced geographical presence 17% between Europe, North America and 26% 35% Asia/rest of the world Implement balanced growth strategy 57%
Slide 4: Highlights of the planned acquisition
Highlights of the planned acquisition Creation of Sunke, an acrylic acid manufacturing JV in partnership with Jurong Chemical, the leader in acrylic monomers in China ● Strong relationship established with Sun Liping, talented entrepreneur and founder of Jurong Chemical ● JV includes the Taixing hig
Slide 5: Benefits of the project: a unique opportunity
Benefits of the project: a unique opportunity Compare favorably versus grass roots option ● Reduced risks, lower costs and immediate access to competitive acrylic monomer sources ● Planned acquisition will replace the capex previously scheduled in the 2017-2020 period Capture strong growth in acryli
Slide 6: Project highlights
Project highlights INNOVATIVE @& CHEMISTRY
Slide 7: Attractive worldwide acrylic acid market
Attractive worldwide acrylic acid market Demand by end markets Super Absorbent Hygiene (diapers) Polymers (“SAP”) Others (water treatment, Super Oil & gas, etc.) absorbents UV curing resins Glacial Rheology additives 33% 26% acrylic acid Others 15% 26% Coatings Propylene Acrylic acid Coating materia
Slide 8: Asia: 50% of worldwide acrylic acid market
Asia: 50% of worldwide acrylic acid market Global acrylic acid market: 4.8 mt Chinese acrylic acid market: 1.2 mt (2013e consumption*) (2013e consumption*) Asia and RoW Others 53% 9% SAP Acrylic polymers 6% 23% UV-curing resins 6% of which Europe 22% 25% China Water treatment 6% 10% 22% Adhesives Te
Slide 9: Description of Sunke's assets
Description of Sunke’s assets Jurong: #1 acrylic acid producer in China / #5 worldwide Sunke assets (Taixing site) Line 1 Line 2 Line 3* ● Modern and competitive site started in 2012 ● 400 well-trained employees ● Existing 2 lines of 160 kt/year acrylic acid ● Site’s competitiveness to be further re
Slide 10: An excellent location
An excellent location Jurong - Taixing Changshu Hipro site 200 km north west from Shanghai ● In the Jiangsu province ● On the Yangtze river ● Industrial area with several international chemical players Well positioned platform ● Competitive access to raw materials (propylene, oxo-alcohols) through Y
Slide 11: Structure of the transaction
Structure of the transaction Creation of a production JV (« Sunke ») between Arkema and Jurong ● Arkema has a majority stake in the production JV 2014 ● Arkema’s cash out: US$ 240m 160 kt 160 kt 160 kt* ● Expected closing in summer 2014 subject to: – Approval by antitrust and administrative authorit
Slide 12: Strengthening Arkema's worldwide position in acrylic monomers
Strengthening Arkema’s worldwide position in acrylic monomers Becoming #3 worldwide and among the leaders in China Global and balanced presence with world scale units in each region Carling (F) Clear Lake (TX) 275 kt Taixing (CN) 270 kt 160 kt (320 kt optional)** Bayport (TX) 65 kt * *Arkema’s share
Slide 13: Key milestone in Coating Solutions development
Key milestone in Coating Solutions development
Slide 14: Arkema's strategy in Coating Solutions
Arkema’s strategy in Coating Solutions Secure competitive and world-scale acrylic monomer production base in each region ● Solid European foothold supported by past optimization of Carling (France) ● US$ 110 m investment program to expand and optimize Clear Lake (US) finalized beginning of 2014 ● Ac
Slide 15: Step by step development of acrylic chain
Step by step development of acrylic chain UPSTREAM: acrylic monomers Europe N.America Asia . . . . . . . . New 2EHA line Acquisition • New ADAME line Capacity Partnership with (Carling) Clear Lake (Carling) expansion Jurong Taixing (ex Dow) • New 2EHA line (Clear Lake) (China) (Bayport) Spin off 200
Slide 16: Coating Solutions in Asia
Coating Solutions in Asia Taixing (China) Acrylic monomers Changshu (China) Coatex (Rheology Additives) Coating Resins Changshu (China) Guangzhou (China) R&D center Sartomer (UV Curing Resins) Mumbai (India) Coating Resins Pasir Gudang (Malaysia) Coating Resins 12 Manufacturing site R&D center
Slide 17: Disclaimer
Disclaimer The information disclosed in this document may contain forward-looking statements with respect to the financial condition, results of operations, business and strategy of Arkema. Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate