Arkema forms JV with Jurong Chemical for acrylics in China

French frim Arkema has formed a joint venture with Jurong Chemical, China’s leader in acrylic acid, named Sunke. The JV, in which Arkema will have a majority interest, comprises the assets of Jurong’s acrylic acid production site in Taixing opened in 2012. This acquisition, in the wake of Arkema’s recent start-up 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 and to assist its customers in particular in fast-growing markets such as superabsorbents, paints, adhesives, water treatment, etc.
 
It represents a new milestone in Arkema’s growth strategy and the achievement of its
2016 targets, in particular by strengthening the Group’s position in high growth countries. Finally, it provides the Group with a highly competitive acrylic monomer industrial footprint in Asia.
 
Production capacity for Arkema initially will be 1,60,000 tonne per annum (tpa) for a $ 240 million investment, with the option to raise it without delay to 3,20,000 tpa for a further $ 235 million investment. Commissioned in 2012, the Taixing site 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 3,20,000 tpa 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 1,60,000 tpa capacity, due to start up in first quarter of 2015. With a 4,80,000 tpa capacity, the Taixing facility will thus become one of the world’s largest acrylic acid sites.