Armacell to Fully Acquire Aerogel Joint Venture AJA in Deal with JIOS Aerogel

On September 2, 2024, Armacell, a leading global provider of flexible foam and engineered foams, announced that it has acquired all shares in Armacell JIOS Aerogels Limited (AJA) from its joint venture partner JIOS Aerogel. This move follows the remarkable success of the joint venture and comes as JIOS shifts its focus towards the electric vehicle sector, while Armacell aims to expand its aerogel production capabilities.

Founded in 2016, the AJA joint venture was established to leverage JIOS’s patented silica aerogel manufacturing technology, with Armacell handling sales and marketing through its extensive global network. AJA has made significant strides in the energy sector with its highly successful ArmaGel® line, known for its superior high-temperature and cryogenic insulation properties. Silica aerogel, renowned as the world’s lowest density solid material, provides exceptional insulation efficiency, which has driven AJA’s success.

AJA’s manufacturing facility in Cheonan, South Korea, has an impressive annual production capacity of over 700 tonnes of aerogel powder. The facility is set for immediate expansion to accommodate the growing demand for its products.

Stephen Kang, CEO and Co-Founder of JIOS, expressed satisfaction with the outcome, stating, “We are thrilled to have supported the inception and growth of a profitable company, and to have now realized the value of this investment. The joint venture has showcased the exceptional performance and value of JIOS technology in producing silica aerogels at scale.”

Laurent Musy, President and CEO of Armacell, highlighted the strategic significance of the acquisition, saying, “This acquisition underscores the success of the joint venture established eight years ago. It marks a significant advancement in Armacell’s strategy to expand its energy and industrial business, particularly through technological innovations, enhanced aerogel manufacturing capacity, and exceptional service capabilities.”

With this acquisition, AJA will become a wholly-owned subsidiary of Armacell. It will continue to operate under an evergreen license agreement from JIOS, allowing Armacell to utilize JIOS’s patented aerogel powder production technology. The decision to divest from AJA enables JIOS to concentrate on developing aerogel solutions for thermal runaway mitigation in electric vehicles. Details of the transaction remain confidential.

Armacell specializes in a range of advanced solutions, including insulation materials for technical equipment, high-performance foams for acoustic and lightweight applications, recycled PET products, cutting-edge aerogel technology, and passive fire protection systems. The company aims to be a global leader in delivering innovative technical insulation solutions that conserve energy and create a positive impact worldwide. Armacell’s operations span 25 manufacturing facilities, employ 3,372 people, and hold over 300 patents. With net sales of €836 million and temperature capabilities reaching up to 650°C, Armacell is at the forefront of energy-efficient and high-performance insulation solutions.