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Arkema to sell SAP biz to Japanese Sumitomo Seika
Mar '08
Arkema presented to the Central Works Council a proposed agreement with Japanese company Sumitomo Seika for the sale to Sumitomo Seika of its business in superabsorbent polymers which will be toll-manufactured by Arkema on its Carling industrial site.

The world's 4th and Asia's 2nd leading producer, with two production plants, in Singapore and in Japan, with a total capacity of 140,000 tons per year, Sumitomo Seika ranks among the main superabsorbent polymer (SAP) players. Arkema has a single production plant, in Carling (France / Moselle), with a 15,000 ton/year capacity, generating annual sales of around €20m.

The acquisition by Sumitomo Seika of the SAP business from Arkema offers a genuine opportunity to develop this activity and strengthen the Arkema Carling plant which will toll-manufacture them:

- through Sumitomo Seika's ranking in SAP markets as well as its know-how in the development of these products
- through Arkema's industrial expertise and the quality of its production teams.

The proposed agreement includes a long-term contract for the supply of acrylic acid produced on the Carling site. It should therefore help consolidate Arkema's Acrylics business by bolstering a direct downstream activity.

The deal, which should become effective on April 1st 2008, is subject to the legal information and consultation procedure with the Arkema France works council.

Arkema Inc

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