Currently, through its adhesives subsidiary Bostik, Arkema and Nitta-Gelatin operate a joint venture (JV) Bostik-Nitta in Japan, which produces industrial adhesives for markets such as electronics and automotive. Arkema has reached an agreement to acquirethe JV from Nitta. The proposed acquisition is set to be complete sometime in the summer of 2018. The JV represents sales of about $35.4 million.

In a separate move, the JV 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.

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.

Arkema acquired Bostik in 2015, both used to be units of energy giant Total and were independently spun off into separate companies. Since then, it has been busy growing Bostik through bolt-on acquisitions. In 2016, Bostik added Den Braven for $543 million. In 2017 it acquired CMP Specialty Products, which at the time generated sales of $15 million, and added XL Brands to expand its US flooring adhesives business in a deal with an enterprise value of $205 million.