What is Arkema's history and presence in the Southern Cone?

Arkema was a spin-off from the French company Total in late 2006. Arkema operates in approximately 55 countries, with over 21,100 employees and reported 2023 revenue of €9.5 billion. As a global manufacturer of specialty materials, Arkema is present in Argentina, Brazil, and Chile in the Southern Cone, with over 600 employees, eight production facilities, seven research and development laboratories, five distribution centers, and three commercial offices. Our product portfolio serves clients in various segments, such as civil construction, coatings, paints, oil, gas, plastics industry, packaging, and refrigeration.

In Brazil, for instance, Arkema has been established for a long time and has recently experienced an impressive expansion fueled by global acquisitions that positively impacted local operations. In 2012, Arkema expanded its footprint by acquiring a local acrylic emulsions manufacturer in Araçariguama, São Paulo. This was followed in 2015 by the acquisition of Bostik, which brought two additional factories in São Paulo under our umbrella. In 2019, we strengthened our market position by acquiring ArrMaz, a company specializing in agricultural solutions and infrastructure. Most recently, in 2021, we acquired Brazilian Poliplas, a producer of silicon, acrylic and hybrid sealants.

As of 2023, Arkema Brazil held the seventh position globally in Arkema Group revenue. 

In which industrial segments is Arkema present?

We operate across various sectors, with a significant focus on construction, where we supply a range of products, including adhesives, grouts, sealants, waterproofing, acrylic emulsions, dispersants, and acrylic monomers, the latter of which is imported. Adhesives are also used in everyday items, and the rise of e-commerce has notably increased demand for packaging materials such as boxes, tapes, and labels, signaling continued growth in this sector. In addition to our construction activities, we are also actively involved in agriculture, automotive, and energy industries.

Are newer generations demanding more sustainable products?

New generations are pushing for sustainable, innovative, and high-performing products without significantly increasing costs. Companies that stay tuned to these trends are going to be in a better position to offer solutions that meet these expectations. As the scale of sustainable products increases, it becomes easier to introduce these materials into both mature markets like Europe and the US and developing markets, such as Latin America and the Southern Cone.

Proof of our commitment to sustainability is the production of bio-based polyamides from castor oil. We have been advancing on sustainable products for the last 40 years, and one of our latest innovations is biological polyurethane modifiers made from biomass. Around 90% of Arkema's new patents are linked to sustainable products. Additionally, we offer water-based, low-VOC paints and coating solutions for reflective roofing. These products minimize heat absorption and contribute to energy savings by reducing the need for air conditioning.

How is Arkema preparing to support advancements in battery technology and manufacturing?

We offer a suite of products designed for every stage of electric battery production, some based on sustainable materials that improve component adhesion and enhance battery performance. While infrastructure investments are essential to fully support electric vehicles—particularly in Brazil—the shift toward these technologies is inevitable. Currently, Brazil lacks local battery manufacturers for vehicles, though several major companies are exploring investments in this area. Should these projects move forward, Arkema is well-prepared to supply the necessary materials to these emerging producers. Additionally, Brazil benefits from its production of ethanol, a renewable plant-based fuel.

How would you evaluate Arkema's performance in the first half of 2024?

2024 represents a challenging landscape. In Brazil, and especially in Argentina, there were issues with import payments. Fortunately, the situation is improving, with inflation under control and a more optimistic growth outlook for the coming months, especially given our diverse portfolio for different industries that help mitigate market challenges and maintain overall strength. For instance, a slowdown in automotive can be balanced by growth in segments like paints, adhesives, sealants, or agriculture. This diversified approach allows Arkema to navigate both tough and favorable periods, consistently delivering performance that meets shareholder expectations.

Do you perceive opportunities within the disruptions of the logistics value chain?

Logistical bottlenecks, while challenging, can also create significant local opportunities. One of Arkema's major advantages is its presence in 55 countries across nearly every continent. This global footprint allows Arkema to navigate and mitigate logistical disruptions by sourcing from other regions if issues arise in Europe, the US or Asia. For example, Mexico has leveraged its proximity to the US to attract significant investments, demonstrating the benefit of having production facilities close to end customers. Brazil has also made some progress in this area, but there is still considerable potential for further development and investment.