Arkema Plays in Attractive End Markets, but Its Transformation Is Not Yet Complete

France-based Arkema was spun out of Total in 2006 as a low-margin, commodity chemical company focused on acrylics and vinyls. Since then, the company has made significant progress toward becoming a specialty materials company. Still, the transformation is not complete, with the company planning to divest its most cyclical business, commodity fluorogases for refrigeration and cooling, and to continue to build its presence in the fragmented adhesives and sealants market with further acquisitions over the 2024-28 strategic cycle. During this period, the company's specialty materials business should see strong demand on the back of secular growth themes such as electric mobility, efficient buildings, and sustainable lifestyle.