Arkema to Expand its Hydrogen Peroxide Capacity in North America

Philadpelphia, PA - July 29, 2005

Arkema will be expanding its North American Hydrogen Peroxide production capacity by 20 kt/year, with a U.S. $10 million investment at its Becancour, Québec, plant to be started by mid-2006.

“Following the downturn of the economy in 2001, Arkema opted for a staged development of its North American Hydrogen Peroxide production capacity. The combination of increasing market demand and use by Arkema of its latest process developments today makes the Becancour expansion a very attractive project for the company”, said Marie-Pierre Chevallier, group president of Arkema’s Hydrogen Peroxide Business Unit.

“This expansion comes in time to meet the growing demands of our customers, particularly given the transition of a number of pulp and paper mills to high brightness grades and the development of new specialty grades and applications,” emphasized Ken Blackburn, general manager Hydrogen Peroxide for North America.

Becancour is one of Arkema’s two Hydrogen Peroxide plants in North America; the other plant is in Memphis, Tennessee. Arkema also operates Hydrogen Peroxide facilities in Europe, with plants in Jarrie (Isère – France) and Leuna (Germany) and in China, with ASHP (Arkema Shanghai Hydrogen Peroxide), a joint venture with Shanghai Coking, located in Wujing/Shanghai. Total production capacity will reach 346 kt/year by mid-2006.

Hydrogen peroxide is used for its oxidizing properties in a large number of applications, including paper and textile bleaching, detergents, effluent treatment, and is a key contributor in many other sectors as electronics, food processing, pharmaceuticals, etc.

About Arkema
Arkema was launched on October 1, 2004, as a result of the reorganization of Total’s chemicals business. Arkema has tremendous potential and counts on the experience and expertise of its 18,600 employees worldwide to create a company of innovation, growth and performance.

With EUR 5.2 billion ($6.3 billion) in sales worldwide, 90 industrial sites in more than 40 countries, and six research and development centers, Arkema is composed of three balanced business segments: Vinyl Products, Industrial Chemicals, and Performance Products. With its internationally recognized brands, Arkema holds leadership positions in its principal markets.

In the U.S., Atofina Chemicals, Inc. is now Arkema Inc. With 2,600 employees, Arkema Inc. reported sales of $1.6 billion in 2004.

In Canada, Atofina Canada, Inc. is now Arkema Canada Inc.

The name Arkema reflects the principles of strength, balance, movement and vitality, as illustrated by the symbol of the arch and the graphics of the logo. In the center of the name, the syllable KEM clearly indicates our activity in the chemical industry and our pride in being in a business that is at the heart of life.

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Stan Howard

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Arkema

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