M&As: Arkema to divest plastic additives biz to India’s Praama; Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical conclude integration of PP/LLDPE biz

Speciality chemicals firm Arkema has announced the proposed divestment to the Indian group Praana of some of its businesses in impact modifiers and processing aids, additives used in the manufacture of PVC profiles, pipes and packaging as well as engineering plastics. With this project, the group adds it continues to refocus its portfolio on its strategic activities. Terms were not disclosed.

This proposed divestment concerns Arkema's impact modifiers and processing aids businesses, and covers the global scope for Methyl Methacrylate Butadiene Styrene (MBS) copolymers as well as the European and Asian scope for acrylic copolymers (AIMPA).

These activities, part of the Coating Solutions segment, generated EUR44 million sales in 2024.

This project entails the divestment of the Vlissingen production facility in the Netherlands which employs 50 people. On the other hand, Arkema will keep within its scope the Mobile plant (US) as well as all the entirety of its American AIMPA businesses.

These plastic additives enable notably to enhance impact resistance and optimise the productivity of extrusion and moulding processes for PVC and for a number of composites used in the construction and packaging sectors.

Praana is a leading producer of specialty chemicals and composite materials comprising Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals, and 3B Fibreglass, which offer advanced solutions for the construction, textile, automotive, cleaning and personal care products industries as well as various industrial markets.

This proposed divestment is expected to be finalised in the first quarter of 2026 and is subject to a preliminary information and consultation process involving the employee representative bodies in the Netherlands.

In other news, Japanese firms Mitsui Chemicals, Idemitsu Kosan Co and Sumitomo Chemical Co., have entered into a MoU regarding the integration of the polyolefin (PO) business operated by Prime Polymer Co, a joint venture between Mitsui and Idemitsu, with Sumitomo Chemical’s polypropylene (PP) business and linear low-density polyethylene (LLDPE) business in Japan.

The aim is to enhance the competitiveness of the PO business, including PP and polyethylene (PE), in Japan. The companies now hereby announce that, after thorough review, they have concluded a business integration agreement and a joint venture agreement regarding the business integration.

The implementation of the business integration is subject to the completion of necessary clearances, regulatory permissions and approvals under competition laws and other relevant laws and regulations. 

PO, which accounts for approximately 50% of the demand for plastics in Japan, is a material used in a wide range of applications including automobiles, electronic materials, and medical devices, making itself essential to Japanese industries. Although domestic PO manufacturers have undergone mergers and consolidations since the 1990s, the issue of oversupply has yet to be resolved. Due to the shrinking market caused by population decline and changes in lifestyle, the demand for domestically produced PO is expected to decrease even further in the future. 

Since its establishment in 2005 as a joint venture between Mitsui and Idemitsu, PRM has been a leader in the Japanese PO industry, with PP and PE (LLDPE and high-density polyethylene (HDPE)) as its main products. PRM and Sumitomo Chemical have a shared understanding that integrating Sumitomo Chemical’s PP and LLDPE businesses in Japan into PRM will not only strengthen the domestic PO business but also enhance its competitiveness against imported products. The integration is expected to generate significant synergies both in the production of PRM and Sumitomo Chemical, both having operating bases in the Keiyo region of Japan, and in the development of technologies to reduce environmental impact.

Through this, Mitsui, Idemitsu, and Sumitomo Chemical will work together to optimise the PO production system, with the goal of achieving cost savings of more than 8 billion yen per year.

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