Arkema and Jayant Agro have signed a joint venture agreement whereby Arkema will acquire a stake of some 25% in Ihsedu Agrochem, a subsidiary of Jayant Agro, specializing in the production of castor oil. This joint venture aims to develop castor oil production in order to provide Arkema with long-term secure and competitive access to this strategic raw material for the manufacture of its biosourced polyamides.
Jayant Agro is a leading producer of castor oil and derivatives. Its subsidiary Ihsedu Agrochem has been the pioneer of the castor oil industry in India and has an experience of over 60 years in the processing of castor seeds into oil. It has been one of Arkema’s main suppliers from the outset.
Arkema is one of the leading players in the castor oil sector with the manufacture of its biosourced specialty polyamides 10 and 11. The world’s sole producer of polyamide 11 for almost 60 years, in 2012 the Group acquired Chinese companies Hipro Polymers and Casda Biomaterials – respectively producers of polyamide 10 and sebacic acid from castor oil –, thereby bolstering its world leading position in biosourced specialty polyamides.
This joint venture with Jayant Agro therefore falls in line with Arkema’s strategy to secure the supply of a key raw material in order to support the development of its bio-sourced specialty polyamides in fast growing applications, such as innovative materials for lighter vehicles and oil & gas extraction.
The project should be finalized in the 3rd quarter 2013.
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 €6.4 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.
About Jayant Agro-Organics Ltd.
Jayant Agro-Organics Ltd. (JAOL) is a public listed company, traded on Bombay Stock Exchange Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE). It is the leading the Castor Oil and Castor Oil based derivative manufacturer in India with a turnover of over € 250 million. JAOL has the widest range of Castor Oil based chemicals and specialty chemicals in the world. Its Research and Development Centre is focused on developing new products and applications based on Castor Oil and its derivatives – delivering much more than molecules, converting the molecules to products for markets and turning ideas into solutions.
Source: Arkema, press release, 2013-04-11.