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Arkema announces five-year growth plan

During its Investor Day that took place on 23 November 2010 in Paris, France, Arkema announced its 2015 goals and highlighted its growth strategy for the next five years. At the end of this new develo…

During its Investor Day that took place on 23 November 2010 in Paris, France, Arkema announced its 2015 goals and highlighted its growth strategy for the next five years. At the end of this new development phase, in 2015, Arkema aims at generating more than EUR 1 billion in EBITDA, corresponding to 14% EBITDA margin. Arkema has, since its spin off in May 2006, set up a transformation strategy, which will enable it to double Group EBITDA in 2010 compared to 2005. Group cost structure has been significantly improved and the business portfolio has been successfully repositioned on high added value products with a better geographical footprint. For the next five years, Arkema will therefore accelerate its growth strategy, aiming at becoming one of the global industry leaders, with innovation, faster growth in emerging countries and “bolt on“ acquisitions as the main components of this development project. In 2015, Group sales are expected to be about EUR 7.5 billion compared to approximately EUR 5.8 billion in 2010. This strong increase will be supported by innovation on sustainability, which should generate about EUR 400 million in new sales over the next five years. Main drivers will be alternative energies, water treatment, composite materials and bio-plastics; 60% increase of sales in emerging countries, especially in Asia; as well as selective acquisitions in the company“s best product lines, representing about EUR 1 billion in additional sales. This acquisition programme will also include divestments of small non-core businesses for circa EUR 300 million sales. Arkema“s new development phase will have strict control of fixed costs and maintaining a solid balance sheet as priorities. Presentations held during the Investor Day are available at: www.finance.arkema.com.

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