Arkema Divests PVC Additives Business to Focus Resources on High-Performance Materials Market

French specialty chemicals company Arkema has announced plans to sell part of its PVC additives business to Indian specialty chemicals group Praana. The business to be sold includes the global Methyl Methacrylate-Butadiene-Styrene (MBS) copolymer business and the Acrylic Copolymer Processing Aids (AIMPA) business in Europe and Asia, which are part of the company’s Coating Solutions segment and are expected to contribute approximately €44 million in sales in 2024. As part of the transaction, Arkema will sell its production site in Vlissingen, Netherlands, which employs about 50 people; however, its plant in Mobile, Alabama, USA, and all AIMPA operations in the U.S. market will be retained. The asset divestment is expected to be completed in the first quarter of 2026.

These additives are primarily used to improve the impact resistance and production efficiency of PVC materials in extrusion and injection molding processes and are widely applied in PVC profiles, pipes, packaging, and certain construction and packaging composites. The buyer, Praana, is an important player in the Indian specialty chemicals and composites sector, with subsidiaries including Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals, and 3B Fibreglass, serving end markets such as construction, textiles, automotive, cleaning, and personal care.

Arkema has long articulated its goal of becoming a company focused on high-performance specialty materials and has been reshaping its business portfolio around this objective. Since its strategic update in 2020, the group has continuously pushed to shift its product structure from traditional intermediates and basic chemicals toward high-value-added specialty materials. Arkema aims to achieve approximately €12 billion in sales by 2028, increase its EBITDA margin to around 18%, and enhance profitability and cash returns through organic growth and quality asset portfolio management. The strategy emphasizes focusing on high-value-added technology solutions, sustainable innovation, expanding presence in five high-growth segments, and optimizing the business portfolio through industrial investments, complementary acquisitions, and selective divestments.

This strategic transformation has already been reflected through multiple concrete initiatives: in 2021, Arkema divested its PMMA (polymethyl methacrylate) business, selling it to Trinseo; additionally, the company has significantly expanded capacity in high-performance polyamides, PVDF, and sustainable materials, while globally expanding R&D and production facilities to serve fast-growing segments such as new energy vehicles, electronics, and 3D printing.

The divestment of the PVC additives business will further strengthen resource concentration and capital efficiency, supporting the group’s expansion plans in high-value-added segments. At the same time, the funds and management resources released by this transaction will enable Arkema to continue investing in its identified growth areas, such as advanced materials and sustainable solutions.