© Reuters.
COLOMBES, France – Arkema, the French specialty materials group, has announced the successful launch of a new production unit for its Pebax® elastomers at the Serquigny plant in France, resulting in a 40% increase in global manufacturing capacity. This expansion caters to the rising demand in the sports and consumer goods sectors, among others.
The new facility is equipped to produce both the bio-circular Pebax® Rnew® and the traditional range of Pebax® elastomers. These high-performance polymers are essential components in a variety of products, including sports footwear such as running and soccer shoes, ski boots, electronic devices, and serve as antistatic additives and components in medical devices.
Erwoan Pezron, Senior Vice-President of Arkema’s High Performance Polymers Business Line, expressed enthusiasm for the increased production capabilities, highlighting the dual benefit of meeting market demand and enhancing sustainability. The improved industrial processes are expected to reduce water consumption at the Serquigny site by about 25%.
Arkema’s commitment to sustainability and innovation is part of its broader goal to become a pure player in Specialty Materials by 2024. The company is organized into three segments: Adhesive Solutions, Advanced Materials, and Coating Solutions, which together contributed to 91% of its sales in 2022. Arkema also maintains a competitive Intermediates segment. With reported sales of approximately €11.5 billion in 2022, Arkema operates in around 55 countries with a workforce of 21,100 employees globally.
The expansion aligns with Arkema’s expertise in materials science and its strategy to address the increasing demand for new and sustainable materials. The company continues to focus on technological solutions that tackle challenges related to new energies, water access, recycling, urbanization, and mobility while engaging in ongoing dialogue with stakeholders.
This development is based on a press release statement.
InvestingPro Insights
As Arkema forges ahead with its expansion to cater to the burgeoning demand for its Pebax® elastomers, the company’s financial and market performance offers additional insights. Arkema has demonstrated a commitment to consistent shareholder returns, having raised its dividend for 3 consecutive years and maintained dividend payments for 16 consecutive years. This is indicative of a stable financial position and a focus on long-term shareholder value. Furthermore, the company’s strong free cash flow yield, as highlighted by InvestingPro Tips, suggests that it’s operating with financial efficiency—a crucial factor for investors considering the company’s growth initiatives.
On the market front, Arkema’s valuation with a P/E ratio of 19.27 reflects its market perception in relation to earnings, while a market capitalization of $8.15 billion underscores its significant presence in the specialty materials sector. Notably, the company’s stock has experienced a robust return over the last three months, increasing by 15.2%, which aligns with the positive momentum following its operational advancements. Additionally, with a gross profit margin of 19.52% in the last twelve months as of Q3 2023, Arkema is maintaining profitability in its operations despite the challenging global economic environment.
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