French specialty chemicals company Arkema has decided not to exercise its option to increase its stake in Chinese JV firm Taixing Sunke Chemicals. Arkema had an option, until early 2016, to increase its stake in Taixing Sunke Chemicals, a production joint venture which owns and operates acrylic acid and butyl acrylate production units in Taixing, China, and therefore access an additional 160,000 tonnes per year acrylic acid capacity.
“As the financial terms of the option no longer reflect current market conditions for acrylics in China, Arkema has decided not to exercise this option. Therefore, Arkema keeps its initial rights to acrylic acid capacities thus supporting the development of its downstream acrylic activities in Asia and its customers’ growth in the region. In line with its strategy to further strengthen its High Performance Materials segment, the Group could allocate part of the unused funds to make bolt-on acquisitions,” said Arkema in a press release.
