COLOMBES, France - Arkema announced a plan to divest its two South African subsidiaries, Arkema Resins Proprietary Ltd. and Harveys Composites Proprietary Ltd., to South African company Ferro Industrial Products Proprietary Ltd., which specializes in the production and distribution of coatings and materials for composite markets.
As part of the Coating Resins business unit within the Coating Solutions segment, the two subsidiaries to be divested accounted for sales of some €45 million in 2012. The proposed divestment includes a production plant in Isipingo (Arkema Resins Proprietary Ltd.), near Durban, and five storage facilities (Harveys Composites Proprietary Ltd.).
Arkema will retain a presence in South Africa in the coating sector through Ferro, via licensing and distribution agreements.
The propose divestment is subject to approval by the relevant antitrust authorities in South Africa. Closure of the deal is expected in the second quarter of 2014.