Arkema: Signature of a Propylene Supply Agreement in the United States

Regulatory News:

As part of its procurement policy for strategic raw materials, Arkema (Paris:AKE) has reached an agreement for the supply of propylene with Enterprise Products Partners L.P., a leading United States midstream Energy Company.

Taking advantage of the development of shale gas in the United States, this contract secures a long-term supply (more than 10 years) of propylene produced by propane dehydrogenation (PDH) and will strengthen the competitiveness of the Coating Solutions segment.

This contract will account for a significant part of Arkema’s propylene feedstock in the United States.

Propylene is a key raw material for Acrylics, a major sector for Arkema, and where the Group is a key player in the United States and the world’s third largest player.

Enterprise Products received the necessary permits for this project in May, 2014 and construction of the plant has now started. The PDH plant is due to be completed in first half of 2016.

This agreement is fully consistent with Arkema’s growth strategy to continue its expansion in the United States.

A global chemical company and France’s leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, some 14,000 employees and 10 research centers, Arkema generates annual revenue of some €6.1 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.