Arkema announces ambitious objectives and several major projects for 2023
Engaged for over 10 years in a transformation journey, Arkema has successfully managed to reposition its business portfolio toward specialty chemicals and to rebalance geographic footprint and is now perfectly positioned to speed up its growth. Over the coming years, the Group will pursue its growth strategy based on innovation, bolt-on acquisitions and expansion in higher growth regions, by strongly focusing on specialties, which should represent more than 80% of the Group’s sales by 2023.
Arkema aims in particular to participate in the consolidation of the attractive, still-fragmented adhesives market, and will invest significantly in advanced materials (Technical Polymers and Performance Additives) that offers broad development and innovation opportunities in material lightweighting, bio-based polymers and design of consumer goods.
Today’s announcement of a major investment project in the bio-based polyamide 11 chain in Asia, of a 30% production capacity increase at Sartomer in China, and of the doubling of production capacity for Thiochemicals in Malaysia, illustrate this strategy.
Confident in the execution of its strategy, and building on these projects and the current momentum in its results which favorably position the Group for the future, Arkema announces ambitious financial objectives for 2023 with a REBIT margin of 11.5% to 12.5%, significantly up on 2016, and an EBITDA to free cash conversion rate maintained at 35%. These objectives will be achieved over time while keeping a net debt over EBITDA ratio below 2, a return on capital employed of at least 10%, and a solid investment grade rating by financial rating agencies.