Arkema is a global leader in specialty materials offering adhesives, biobased materials, coatings, composites, healthcare, and sports equipment solutions.
Arkema describes itself as a leader in specialty materials addressing major societal and ecological challenges. What are those challenges as we head into 2025?
For us, it’s about sustainable solutions. That’s our purpose—bringing sustainable solutions to our customers. Many of our customers are focused on improving energy efficiency in housing, which not only reduces the carbon footprint but also saves energy and infrastructure costs. This is a key focus area. Renewable energy, whether solar or battery storage, is another significant focus.
We’re also investing in growth areas like health and nutrition, which are critical for societal well-being, and in digitization, where the need for advancements in semiconductors and electronics is essential, especially as AI and digital transformation evolve. We’ve always been innovative in these sectors. While we’ve externalized our focus points—for instance, energy-efficient and modular building designs or semiconductors—the core of what we do remains consistent. Renewable energy and health-related technologies have gained more attention, but these align with long-standing trends within Arkema.
What are the projected levels of growth you are projecting, and what are the main factors driving this growth?
Some traditional businesses are growing steadily due to already strongly adopted technologies, but newer areas, like semiconductor solutions, are growing at rates above 10%. While North American building and construction has slowed due to housing costs and mortgage rates, niche applications like energy-efficient building materials are still seeing growth. These areas are advancing due to technological shifts, replacing older solutions with more efficient ones. This drives our company’s growth, particularly in sectors with higher-than-GDP growth rates.
It’s predominantly market pull. In construction, for instance, new designs and materials deliver long-term value through energy efficiency, better infrastructure, and durability. While growth rates in EV batteries have decelerated, they’re still robust compared to other sectors. Regional differences, like North America catching up to Asia in battery development, also play a role. Global trends and regional nuances ensure that these areas remain dynamic, and we’re adapting to meet these varying demands.
You’re a global company with significant investments in Asia and North America. How do you anticipate your geographic investments evolving?
We aim to grow across all geographies. Regional supply chains have become more critical due to geopolitical factors—whether shipping disruptions or tariff threats, you need to adapt. Additionally, different regions lead to different technologies. For instance, Chinese battery manufacturers have one direction, while U.S. carmakers have another.
We’re diversifying our presence across regions to strengthen supply chain resilience. Recent projects include the P11 bio-refinery in Singapore, acquisitions in Korea, and North American investments, ensuring we’re agile and not overly reliant on one market. Global uncertainties like overcapacity in China and North American protectionism require us to be prepared. Our recent investment in North America replaces a supplier from China with local production. While Asia offers lower capital costs, North America provides energy and infrastructure advantages. Balancing these factors to meet both local and global demands is the key.
What measures are you implementing to strengthen safety and environmental compliance in the chemical industry?
We’ve bolstered measures to address extreme weather events and improve occupational safety. We enhanced protocols for floods, hurricanes, and other extreme events. Additionally, we prioritize process safety, especially after acquisitions, by heavily investing in aligning new facilities with our rigorous safety and compliance standards.
Going into 2025, what is your primary focus in terms of M&A, and progress towards your sustainability goals?
Our primary focus for 2025 includes managing multiple initiatives such as infrastructure reinvestments, bringing new plants online, and adopting certifications like ICC+. With aging infrastructure in the U.S., we’re integrating new technologies to maintain operational efficiency. Talent acquisition is also key, as we promote STEM education and foster a diverse workforce to address generational shifts.
Furthermore, we are making significant progress toward our goal of 100% lower-carbon renewable energy by 2030, achieving about 70% of this target, ahead of schedule. Lastly, M&A remains a cornerstone of our strategy, as we acquire companies that align with our growth areas and commitment to sustainable specialty materials.
