ARKEMA
Acquisition of majority stake in South Korea's PI Advanced Materials
For EUR 728 mn, Arkema (Colombes, France; www.arkema.com) is acquiring a 54% share in South Korean polyimide specialist PI Advanced Materials (PIAM, Seoul; www.pimaterials.com) owned by investment company Glenwood Private Equity. The remaining 46% of the shares are being traded on the South Korean stock exchange. This is Arkema’s first entry into the polyimide market. Major competitors in polyimide films include DuPont, Kaneka, and Taimide.
![]() Rigid polyimide films are the main field of activity of the South Korean company (Photo: PIAM) |
The former joint venture of the two South Korean plastics producers SK Chemicals (SKC, Seoul; www.skchemicals.com) and Kolon (Seoul; www.kolon.com) is, according to its own information, the world market leader in polyimide films with a market share of 30%. In addition, there are activities in coating lacquers as well as powders for polyimide pressed parts – which, according to PIAM, makes it the only manufacturer with mass production of all three forms. Applications include printed circuits, OLED screens, E&E components for e-mobiles, and 5G mobile antennas.
PIAM operates two plants in Gumi (north of Daegu) and Jincheon (south of Seoul), each with four extrusion lines for PI films. With great regularity, PIAM has expanded production on average every two years. The most recent investment was for a fourth extrusion line in Gumi, which was installed in 2022. This increased the capacity to 5,250 t/y at last count. Another extrusion line is to follow by the end of 2024, bringing film production to 7,500 t/y.
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In addition, there is currently a capacity of 600 t/y for coating formulations. Here as well, a major expansion of capacity to 3,600 t/y is on the cards, to be realised in Jincheon by August 2024. The current workforce of 320 is also expected to increase as part of this expansion.
In response to a Plasteurope.com query, an Arkema spokesperson confirmed the backward integration of the supplier, which has a 6,000 t/y polymerisation facility for polyimide base polymer to supply the processing lines.
In 2022, PIAM generated KRW 276.4 bn (EUR 194 mn) in sales. That’s up more than 8% “despite supply chain disruptions and declines in smartphone sales”, according to the annual report. EBITDA is reported at KRW 78 bn, resulting in a margin of around 35%. PIAM puts net profit at KRW 45.7 bn.
30.06.2023 Plasteurope.com [253146-0]
Published on 30.06.2023