Arkema selling vinyl business to Switzerland’s Klesch Group

France-based specialty chemical supplier Arkema is exiting the vinyl products business.

In an effort to refocuses on products less sensitive to volatility in raw material prices and the economic cycle, Arkema has announced plans to sell its vinyl division to Swiss private equity firm Klesch Group for 100 million euros.

The business will be headed by a management team from Arkema, including Otto Takken, currently the executive VP of Arkema’s vinyl products, chlorochemicals, PVC, and downstream business.  Arkema will also transfer 1,780 employees in France and 850 employees outside France to the new entity, whose name has not yet been decided.

The division hasn’t been healthy of late: In the third quarter of this year, Arkema reported a vinyl products sales decline of 2.1 per cent compared with the year earlier period.

Headquartered in Geneva, Klesch Group is a family-owned company specializing in industrial and commodity-related business. With more than 3,000 workers, the company has locations in Germany, the Netherlands, Russia, Switzerland and the United Kingdom.