France based chemical concern Arkema reached the highest historical net income of €184 million in the second quarter of 2011, which was +55% compared to Q2 of 2010.
The Board of Directors of Arkema met on August 1, 2011 to review the Company’s condensed consolidated accounts for the first six months of 2011.
Thierry Le Hénaff, Chairman and CEO of Arkema, stated: “With an 18% EBITDA margin, significantly up on last year, the second quarter of 2011 confirms the Group’s high performance level in a favourable economic environment, albeit still relatively volatile and mixed based on the regions.
“These outstanding results represent the Group’s best performance on a quarter. They reflect the increase in sales prices in the vast majority of our product lines, and our ever-growing presence in specialty chemicals.
“Our repositioning in buoyant markets and the contribution of growth projects, in particular the production units recently opened in China and innovation in sustainable development solutions are key factors of success.”
Performance product take 28% of Arkema’s sales in 2Q’11 and include intermediate products that are used in the feed industry. One major product is for example MMP, which is used to make synthetic methionine.
Performance Products sales continued to grow, reaching €504 million (+12.5% compared to 2nd quarter 2010).
EBITDA stood at €96 million, their highest historical level, against €76 million in 2nd quarter 2010. In addition to price increases, EBITDA benefited from the strong growth momentum in Asia with the rapid ramp up of the Kynar PVDF fluoropolymer production unit started in March in Changshu (China).
This also includes the significant contribution of new applications in many sectors related to sustainable development (photovoltaics, high performance biopolymers for automotive, filtration, specialty glass coatings for recycling, etc.) and the refocusing of Specialty Polyamides on higher value added applications.
In April 2011, Arkema announced a major project for the construction of a thiochemicals platform in Asia in partnership with Korean company CheilJedang (CJ Group). Alongside the traditional production of thiochemicals, this project includes the construction of the first world-scale industrial plant for bio-methionine
, a sulfur amino acid widely used in animal feed which is enjoying strong growth in Asia. The project represents overall capital expenditure of $400 million shared equally between both partners.
Arkema is also managing a plant in Beaumont, Texas, which produces MMP for Novus International.