| Arkema subsidiary Alphacan is set to divest its sanitary and heating pipes business, which uses cross-linked polyethylene (PEX) technology, in order to refocus on its core businesses of PVC pipes and profiles.
In a news release Arkema said the business would be sold to the French company COMAP, a subsidiary of the Dutch group Aalberts Industries. Terms of the deal were not disclosed.
Alphacan’s sanitary and heating pipes activity has annual sales of approximately �25m, and involves the design, production and marketing of PEX systems for domestic hot water pipes, heating pipes, and floor heating/cooling networks. PEX pipes are produced at the Nevers industrial site in France, which employs 85 people.
French PVC producer Arkema separately announced third quarter results which showed a 5.1% annual improvement in sales to �1.45bn, and net income rising by 8.1% to �40m. Sales in its vinyl products business rose by 12.8% to �378m in the third quarter of this year, supported by price increases and solid demand for caustic soda.
However, Thierry Le Hénaff, chairman and ceo of Arkema, warned: “Since mid-October, we observe a sudden ongoing slowdown of demand in some markets, especially in automotive and construction, amplified by destocking which strongly limits the visibility on the economic environment in the 4th quarter of 2008.”
The company’s priority, he said, is to continue a cost-saving programme, partly through reducing capacity. One recent action to improve productivity was the decision by subsidiary Altuglas International to shut its plant in Pomezia, Italy, which produces PMMA cast sheets and blocks.
By the end of 2008, Arkema expects its cumulative fixed cost savings to exceed �330m versus 2005 levels. |
