Arkema Strengthens Its Positions in the United States in the Production of Key Additives for the Biofuel Value Chain

COLOMBES, France--(BUSINESS WIRE)--Regulatory News:

In a fast-growing biofuel market, driven by the demand for sustainable growth, in particular decarbonization of road and air transport, Arkema (Paris:AKE) has decided to increase its global production capacity of DMDS (dimethyl disulfide), an additive that is key in the production of renewable fuels, at its Beaumont site in the United States.

The development of biofuels, for which demand will have doubled by 2040, is essential for the decarbonization of transport, particularly in the aviation sector. DMDS is proving the most efficient solution to support biorefineries in the conversion of vegetable oils and agri-food waste into renewable fuels.

The world leader in DMDS, Arkema offers sulfur-based and specialty solutions to support its customers’ growth in Europe, Asia and North America. DMDS makes it possible to produce clean and renewable fuels while optimizing the performance of the purification and transformation processes for which it is intended. It is also used in crop protection and as a raw material in the production of Sulfonyls used particularly in electronics.

Thus, with installed capacities in Lacq (France) and Kerteh (Malaysia), a world-renowned customer service and support offering, Arkema will be with these upcoming US capacities in a position to serve its customers locally across the three major regions in which the Group operates.

“This latest investment on the Beaumont site in Texas will make it possible to meet the strong growth in demand, particularly in the United States, and also provide a local supply in the region. This project is in line with Arkema's wish to support the transition to renewable energies and will enable the Group to strengthen its position as a global player in high-growth and more environmentally friendly sulfur derivatives and innovative materials,” stated Laurent Tellier, Senior Vice-President Performance Additives.

This €130 million investment will also enable the creation of jobs on the Beaumont site, while strengthening the site’s upstream/downstream integration.

The project is scheduled to come on stream in second quarter 2025.

Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address ever-growing demand for new and sustainable materials. With the ambition to become in 2024 a pure player in Specialty Materials, the Group is structured into 3 complementary, resilient and highly innovative segments dedicated to Specialty Materials - Adhesive Solutions, Advanced Materials, and Coating Solutions - accounting for some 91% of Group sales in 2022, and a well-positioned and competitive Intermediates segment. Arkema offers cutting-edge technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around € 11.5 billion in 2022, and operates in some 55 countries with 21,100 employees worldwide.