Business Strategy and Outlook| Rob Hales |
France-based Arkema was spun out of Total in 2006 as a low-margin commodity chemical company focused on acrylics and vinyls. Over the past 15 years, Arkema has made significant progress toward becoming a speciality materials company through portfolio adjustments, with the divestment of the vinyls business in 2012 a key turning point. The company expects to complete the transformation by 2024 with continued acquisitions in adhesives and sealants while the most cyclical business (commodity fluorogases for refrigeration and cooling) is slated for divestment. We are constructive on the final destination and believe the company will have a more moatworthy business portfolio at completion.