Arkema plans to divest select plastic additives businesses to India鈥檚 Praana, reinforcing its strategic focus on high-value specialty materials.
Arkema has announced a proposed plan to divest a portion of its plastic additives operations to the Indian specialty chemicals group Praana. The transaction forms part of Arkema鈥檚 broader strategy to actively manage its business portfolio and sharpen its focus on core, higher value-added activities within its Specialty Materials segment.
The proposed divestment includes Arkema鈥檚 businesses dedicated to impact modifiers and processing aids, which are critical additives used primarily in the production of PVC profiles, pipes, packaging materials, and various engineering plastics. These additives play a vital role in improving the mechanical performance of plastics, particularly by enhancing impact resistance and increasing efficiency during extrusion and molding processes. They are widely applied in construction materials, packaging solutions, and composite products that demand durability and optimized manufacturing productivity.
More specifically, the transaction covers Arkema鈥檚 global operations related to Methyl Methacrylate Butadiene Styrene (MBS) copolymers, as well as the European and Asian businesses focused on acrylic impact modifiers and processing aids (AIMPA). These activities currently fall under Arkema鈥檚 Coating Solutions segment and collectively generated sales of approximately 鈧�44 million in 2024. By divesting these operations, Arkema aims to further align its business structure with long-term strategic priorities centered on innovation-driven and specialty-focused materials.
As part of the proposed transaction, Arkema plans to transfer ownership of its production facility located in Vlissingen, the Netherlands. This site employs around 50 people and is a key asset supporting the impacted additives businesses. However, Arkema will retain its Mobile production plant in the United States, along with all of its American AIMPA operations, which will remain fully within the group鈥檚 portfolio. This selective approach highlights Arkema鈥檚 intent to maintain a strong footprint in regions and product lines that align closely with its future growth ambitions.
The buyer, Praana, is a well-established Indian industrial group with a strong presence in specialty chemicals and composite materials. Its portfolio includes companies such as Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals, and 3B Fibreglass. Collectively, these businesses provide advanced material solutions to a wide range of industries, including construction, textiles, automotive manufacturing, cleaning products, personal care, and other industrial applications. Through this acquisition, Praana is expected to strengthen its global position in plastic additives and expand its technological and geographic reach.
The proposed divestment remains subject to standard regulatory and procedural requirements. In particular, it will involve a preliminary information and consultation process with employee representative bodies in the Netherlands. Subject to these conditions being met, Arkema expects the transaction to be completed during the first quarter of 2026.
Overall, this move underscores Arkema鈥檚 continued commitment to disciplined portfolio optimization. By exiting selected lower-priority activities and reallocating resources toward strategic, high-value specialty materials, the group aims to enhance long-term competitiveness, profitability, and innovation capacity in its core markets.
