Armacell takes over JIOS Aerogel’s stake in AJA to strengthen Aerogel production and market position

Armacell, an industry leader in flexible foam for equipment insulation and engineered foams, has announced the acquisition of JIOS Aerogel’s shares in Armacell JIOS Aerogels Limited (AJA). This strategic move marks the complete takeover of the successful joint venture, which was initially established in 2016 to produce high-performance silica aerogel products. The acquisition underscores Armacell’s commitment to expanding its aerogel capabilities, while JIOS Aerogel refocuses on its core mission in the electric vehicle (EV) market.

Armacell Expands Its Aerogel Production Capabilities

The joint venture, AJA, was formed with the goal of leveraging JIOS Aerogel’s advanced silica aerogel technology and Armacell’s extensive global marketing network. AJA has made significant strides in the energy sector, particularly with its ArmaGel product line, which is renowned for its exceptional insulation properties in extreme temperatures. Silica aerogel, the core material of ArmaGel, is known for its low density and high insulation efficiency, making it a preferred choice for high-temperature and cryogenic applications.

The AJA manufacturing facility, located in Cheonan, South Korea, has demonstrated impressive production capabilities with an annual capacity exceeding 700 tonnes of aerogel powder. The facility is set for immediate expansion to accommodate the growing demand for aerogel products, reflecting the robust performance and future potential of the joint venture.

JIOS Aerogel Shifts Focus to Electric Vehicle Market

Stephen Kang, CEO and Co-Founder of JIOS Aerogel, expressed pride in the venture’s accomplishments: “We are delighted to have supported the establishment and growth of AJA, and to have realized the value of this successful investment. The joint venture has showcased the exceptional performance of JIOS technology in producing silica aerogels on a large scale.”

JIOS Aerogel’s decision to divest from AJA is part of a broader strategic shift towards addressing the needs of the electric vehicle market. Aerogels are increasingly recognized for their role in enhancing the safety and performance of EV batteries by mitigating thermal runaway. JIOS aims to accelerate the adoption of aerogels in this critical application, contributing to the advancement of battery safety technologies.

Armacell’s Strategic Growth and Innovation

Laurent Musy, President and CEO of Armacell, highlighted the significance of the acquisition: “This transaction is a testament to the success of our joint venture and represents a major advancement in our strategy to expand our energy and industry business. By integrating AJA into our operations, we enhance our technological capabilities and increase our production capacity in the aerogel sector.”

As part of the acquisition, AJA will operate as a wholly-owned subsidiary of Armacell, continuing to benefit from an evergreen license agreement with JIOS for the use of its patented aerogel production technology. This arrangement ensures that Armacell can maintain its competitive edge in aerogel manufacturing while supporting JIOS’s focus on innovative solutions for EV batteries.

About Armacell and JIOS Aerogel

Armacell, headquartered in Luxembourg, is renowned for its innovative insulation materials and engineered foams. With over 3,300 employees and 25 production facilities across 19 countries, Armacell generates significant global impact through its Advanced Insulation and Engineered Foams businesses. The company reported net sales of EUR 836 million and an adjusted EBITDA of EUR 155 million in 2023. Armacell’s product offerings include insulation materials for technical equipment, high-performance acoustic and lightweight foams, recycled PET products, next-generation aerogel technology, and passive fire protection systems.

JIOS Aerogel, founded in Singapore in 2013, is a leading manufacturer of silica aerogel powders. The company has pioneered a cost-effective production process that has positioned it at the forefront of aerogel technology. JIOS’s focus on enhancing the safety and performance of EV batteries aligns with its mission to advance the adoption of aerogels in critical applications.