Wedoany.com Report-Dec.26, Arkema S.A. has announced a proposed divestment of certain businesses within its impact modifiers and processing aids portfolio to the Indian group Praana. This transaction covers the global scope for Methyl Methacrylate Butadiene Styrene (MBS) copolymers as well as the European and Asian scope for acrylic copolymers (AIMPA). These activities form part of Arkema’s Coating Solutions segment and generated €44 million in sales during 2024.

The proposal includes the transfer of the production facility in Vlissingen, the Netherlands, which employs 50 people. Arkema will retain its Mobile plant in the United States, along with all American AIMPA businesses.

The plastic additives involved enhance impact resistance and optimize productivity in extrusion and molding processes for PVC profiles, pipes, packaging, and various composites used in construction and packaging sectors.

Praana is a leading producer of specialty chemicals and composite materials. Its portfolio includes Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals, and 3B Fibreglass. The group provides advanced solutions for industries such as construction, automotive, textile, cleaning, personal care, and various industrial markets.

The proposed divestment aligns with Arkema's ongoing strategy to actively manage its portfolio and concentrate on strategic, higher value-added activities in Specialty Materials. This move supports the company's ambition to focus on resilient and innovative segments in Adhesive Solutions, Advanced Materials, and Coating Solutions.

The transaction is expected to be finalized in the first quarter of 2026. It remains subject to a preliminary information and consultation process with employee representative bodies in the Netherlands.

Arkema S.A. (ARKAY) shares have declined 17.8% over the past year, compared with a 27.1% drop in the broader industry. The company currently holds a Zacks Rank #3 (Hold).

For context in the Basic Materials sector, some higher-ranked options include Kinross Gold Corporation (KGC) with a Zacks Rank #1 (Strong Buy), as well as Fortuna Mining Corp. (FSM) and Equinox Gold Corp. (EQX), each with a Zacks Rank #2 (Buy). These stocks have shown stronger performance, with KGC gaining 212.8% over the past year, alongside positive earnings outlooks.

This development reflects Arkema's continued efforts to optimize its operations in the global specialty chemicals market while maintaining a strong presence in key regions and product areas.