Arkema, a French manufacturer of specialty materials, celebrates 40 years in China and declares its commitment to sustainable growth for the future.

"ESG has been our commitment, and we hope to use our expertise to achieve our carbon emission reduction goals," Marc Schuller, chief operating officer of Arkema Group, said during the company's four-decade celebration ceremony in Shanghai recently.

In May last year, the group announced an ambitious plan for decarbonization: By 2030, greenhouse gas emissions in "Scope 1" and "Scope 2" will decrease by 48.5 percent, while emissions in "Scope 3" will decrease by 54 percent compared to 2019, to achieve a net-zero carbon target by 2050.

The group plans to invest 400 million euros ($435.6 million) by 2030 to support this decarbonization plan. All production bases in China will benefit from this energy fund, engaging in activities related to energy conservation, emission reduction and low-carbon energy transformation.

The company has also set specific plans to guide daily work towards this goal, both on the production and sales sides. For example, a special team has been established to use various tools to monitor and manage energy consumption throughout production operations. Additionally, the company follows the "ABC" rules in operation, where "A" stands for advanced materials that are durable and sustainable, "B" for bio-based materials with leading expertise and "C" for circular materials that are reused to the maximum extent while preserving their performance.

Aiming to build a sustainable world with innovative materials, the company declares its focus on investing in five major submarkets before 2028: green energy and electric mobility, advanced consumer electronics, sustainable lifestyles, more efficient buildings and homes, water treatment, medical equipment, and crop nutrition, according to Zhang Xiaoyu, president of Arkema China.

In terms of green energy, at the beginning of this year, Arkema's ArrMaz factory in Yunnan fully adopted green electricity and signed the first long-term green power procurement framework agreement. In addition, its Sartomer and Bostik factories in Guangzhou have also signed contracts for 100 percent green electricity.

"We hope to leverage our position as a market leader to promote sustainable development, helping society achieve carbon neutrality while guiding our customers towards sustainable practices", said Liu Weiqing, a director from Arkema China.

Leveraging innovation and sustainable development as a differentiation strategy, Arkema has invested significantly in product development and intellectual property rights.

In 2023, Arkema China submitted 13 technology disclosures and 8 patent applications, with 94 percent related to sustainable development.

Ties with China

"The chemical industry, and green chemistry in particular, is a sector of excellence in France. The specialty materials solutions developed by Arkema perfectly illustrate the quality of French know-how," said Joan Valadou, consul general of France in Shanghai, during the celebration ceremony.

Arkema started operations in China as early as 1984, long before the Arkema Group was established in 2004. "Without the opportunity to build up our knowledge of the country, I'm not sure we would be where we are today," Marc told China Daily, appreciating that China and France built ties 60 years ago to facilitate business.

Today, headquartered in Shanghai, Arkema China has 3,000 employees, 10 production sites, and two research and development centers. Among them, the Suzhou Changshu base, as one of Arkema's largest global production platforms, has received a total investment of 600 million euros. After 11 years of development, the Changshu research center has evolved into Arkema's largest R&D hub in Asia. Additionally, Arkema China contributes 13 percent to the group's overall sales.

"The China market holds great strategic importance for Arkema, which is currently Arkema's second-largest national market," said Marc. "In the next five years, a significant portion of our group's growth may come from Asia, with a substantial part of it coming from China. I believe that this development will significantly impact us in various aspects," Marc said during an interview.

Arkema has continued to expand its investment scale in China in recent years and has deployed several key growth projects in the country. Last year, Arkema increased capital by 1 billion yuan ($137.7 million) in its subsidiaries in Shanghai, Zhangjiagang and Changshu.

At the end of last year, Arkema's Nansha plant in Guangzhou doubled the production capacity for Sartomer®'s specialty UV/LED curing resins. This expansion project will provide strong support for the electronics market in Asia and drive forward the development of renewable energy.

In addition, by 2025, the production capacity of organic peroxides at the Changshu base will be expanded to 2.5 times its original size. Luperox® organic peroxides, as a critical component in the photovoltaic panel manufacturing process, are playing an increasingly important role in the energy transition.

Furthermore, with an increasing number of Chinese companies expanding globally, Arkema perceives this trend as an opportunity, given its widespread presence across Europe, the Americas, the Middle East and Asia. In the future, Arkema aims not only to supply Chinese customers for their domestic needs, but also to accompany them in their export strategies and build their presence outside the country, according to Marc.