NARA, Japan—Arkema S.A., through its joint venture, will acquire the industrial adhesives business of Nitta-Gelatin Inc.
Through its adhesives subsidiary Bostik S.A., Arkema and Nitta operate Bostik-Nitta, which produces industrial adhesives for markets such as electronics and automotive. The venture will acquire the industrial adhesives business of Nitta-Gelatin in a deal that's set to be complete sometime in the summer of 2018, subject to approval by antitrust authorities, Arkema said in a May 17 news release.
The JV represents sales of about $35.4 million.
In a separate move, the joint venture will invest in the construction of a new world scale plant in Nara that will include several production lines. One dedicated to adhesives for the nonwoven market for hygiene applications and the other for industrial adhesives markets.
Arkema said the plant, which is projected to come online in 2020, will enable the Bostik-Nitta joint venture to support the growth of its customers in the Japanese hygiene market, while also reinforcing the production its industrial product lines.
The moves support Arkema's strategy to develop its adhesives unit, which it has identified as one of the major drivers of its long-term growth.