Smart Molding International 2-2023

10 smart_molding international 2/2023 newsfeed Arkema broadens its range of high performance polymers with the acquisition of PIAM With more than 30% global market share, PI Advanced Materials (PIAM), based in South Korea, is the global leader of polyimide films for flexible printed circuit boards and graphite sheets used in the high growth and high margin markets of mobile devices and electric vehicles. PIAM’s ultra-high performance polyimides are cutting-edge materials offering exceptionally high temperature resistance, dimensional stability, flexibility and electric insulation. They are increasingly used in attractive markets such as electric vehicles, consumer electronics, semiconductor manufacturing and other advanced industrial applications. They benefit from the growing need for miniaturization, higher thermal management and increased safety and durability. With two state-of-the-art industrial production sites and two R&D centers in South Korea, this highly innovative company employs approximately 320 people. PIAM enjoyed strong sales growth of 12% per year on average in the 2012- 2021 period, focusing on top quality and high value added products, and reaching an EBITDA margin of 30%. Sales amounted to around €200 million in 2022, temporarily impacted by the large destocking observed in the global consumer electronics market. PIAM sales are expected to grow by around 13% per year in the coming years, supported by its robust innovation pipeline and successful customer qualifications in 5G antennas and high-resolution OLED displays, as well as by strong growth in applications such as flexible screens. In the electric vehicle market, growth will be driven by high demand for tapes for battery cell insulation, flexible printed circuit boards for battery management systems and varnishes for high-voltage motor coils. Besides, PIAM will benefit from the recently finalized capital expenditure program of around €100 million that will cover most of the planned mid term developments. The acquisition of Glenwood Private Equity’s 54% controlling stake will allow the full consolidation of PIAM in Arkema’s accounts. The remaining 46% of the shares will continue to be listed on the Korean stock exchange. PIAM’s portfolio fits perfectly with the Advanced Materials segment, strengthening the high performance polymer range in attractive markets linked to megatrends, and enabling to accelerate the segment’s organic sales growth and expand its EBITDA margin. "PIAM is an outstanding company with a unique technological positioning, state of the art manufacturing facilities and invaluable customer relationships. This acquisition is fully aligned with our strategy to be at the forefront of high performance materials for high growth end markets supported by megatrends such as electric vehicles and advanced electronics. After the divestment of PMMA, the acquisition of Ashland adhesives and the current start-up of our bio PA11 plant in Singapore, Arkema is delivering another significant milestone of its strategy focused on innovative materials for a sustainable world." - Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer. Given PIAM’s best-in-class innovation, ultra-high performance product portfolio and leading position, this project is perfectly aligned with the Group's ambition to be a pure player in Specialty Materials and to pursue its development in fast-growing applications supported by megatrends. The project offers significant pre-tax synergies estimated at around €30 million at the EBITDA level, which should be progressively achieved within the next five years, with a limited requirement for additional capital expenditure. These synergies are driven by the perfect complementarities of product ranges, Arkema’s geographic reach and PIAM’s strong customer intimacy in Asia. The deal, which is subject to the approval of Chinese and Korean anti-trust authorities, should be finalized end-2023. Arkema www.arkema.com Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer (photo: Arkema)