Industry News

Arkema sells its Urea Formaldehyde Resins business to Hexion

Published on 2007-05-28. Author : SpecialChem

Arkema announces the sale to the company Hexion Specialty Chemicals of its Urea Formaldehyde Resins business, based on the Leuna site in Germany. The sale of this activity, which reports annual sales close to € 100 M, falls in line with Arkema's strategy for a selective management on its asset portfolio.

Announced in September 2006, the proposed sale of Arkema's Urea Formaldehyde Resins business has today been confirmed by the signing of an agreement with the American company Hexion, world leader in thermoset resins. The deal, which should come into force in the third quarter of 2007, is subject to approval by antitrust authorities.

The Urea Formaldehyde Resins business, solely based on the Leuna site, Germany, following the closure of the French production unit based at Villers-Saint-Paul (France), offered very little synergy with Arkema's other activities.

Urea Formaldehyde Resins are used in particular as binders for particle board and chipboard, and in paper impregnation for the manufacture of laminated board.

This transaction is part of Arkema's transformation process initiated at the time of its creation, and represents a new step in its portfolio management, after the sale at the beginning of the year of its agrochemicals business unit Cerexagri, and the announcement early May of the sale of its Specialty Amines activity produced in Riverview in North America.

Headquartered in Columbus, Ohio, Hexion Specialty Chemicals is the world leader in thermoset resins. With a wide range of specialty products and technologies, Hexion serves the global wood and industrial sectors. With over 7,000 employees, Hexion reported sales of $ 5.2 M in 2006.

A global chemical player, Arkema consists of 3 coherent and related business segments: Vinyl Products, Industrial Chemicals, and Performance Products. Present in over 40 countries with 17,000 employees, Arkema achieves sales of 5.7 billion euros. With its 6 research centers in France, the United States and Japan, and internationally recognized brands, Arkema holds leadership positions in its principal markets.

Source: Arkema

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