Petrobras and Braskem Team Up in Brazil in US$ 240 Million Project

    Braskem and Petrobras Quimica, two giant Brazilian companies, announced, yesterday, their decision to invest US$ 240 million in a modern industrial unit for the production and sale of polypropylene in Paulínia, state of São Paulo.

    Braskem S.A. is a leader in the thermoplastic resins segment in Latin America and one of the three largest Brazilian privately-owned industrial companies. Petroquisa is a subsidiary of state-owned Petrobras.


    The initiative, which implies the creation of a joint venture between the companies, was approved June 22, by their respective boards of directors.


    The new industrial unit, which will be located in the heart of the main consumer center in Brazil, will have initial polypropylene production capacity of 300,000 tons/year, with potential to reach 350,000 tons.


    Operations are scheduled to begin by the end of 2007. Including this additional capacity, Braskem will have 950,000 tons/year production capacity of polypropylene to meet the growing demand for this resin, enabling the Company to consolidate its leadership position in the principal thermoplastics produced by Braskem.


    The raw material used in the new unit will be polymer-grade propylene supplied by Petrobas.


    “Braskem and Petroquisa are investing in a world-class polypropylene unit, which combines production scale, updated technology and access to competitive raw material,” said Braskem’s CEO, José Carlos Grubisich.


    “Additionally, this initiative consolidates our strategic association with Petroquisa,” he added.


    The management of the new unit will be shared by both companies, with Braskem being responsible for sales and marketing. 


    Average annual revenues are projected to reach US$ 317 million, and the net present value of the project is estimated at US$ 204 million.


    Braskem will have a 60% stake in the new unit’s voting capital, and Petroquisa will hold the remaining 40%. 


    Out of a total of US$ 240 million to be invested in the new industrial unit, 30% will be equity contributions by shareholders and the remaining amount will be funded by long term financing specifically for this project.


    “The decision of making this investment shows our confidence in the growth of both the Brazilian economy and the thermoplastic resins market,” affirmed Grubisich.


    Braskem will contribute the process technology that will be employed in the Paulí­nia industrial unit, which is the most modern technology available in international markets and as to which Braskem has complete technical know-how, representing a competitive advantage of the venture, in addition to opening the possibility of transferring technology to future projects.


    The new unit, according to Braskem officials, will operate under the strictest safety and environmental standards, consistent with sustainable development concepts.


    The Paulí­nia industrial unit is part of Braskem’s expansion plan, which has been developed since 2004 and that is expected to add 1.2 million tons to its production capacity through 2007. 


    Braskem operates 13 manufacturing plants located throughout Brazil, and it has an annual production capacity of 5.8 million tons of resins and other petrochemical products.


    Braskem S.A. – www.braskem.com.br

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil’s GDP Up 5.2%, Best in 10 Years

    Brazil’s Gross Domestic Product (GDP) – the total of goods and services produced in the ...

    Welcome to Carnaval

    The first Carnaval clubs were founded in 1855. They were called Great Societies. Today, ...

    Caipirinha from Brazil

    Brazilian Cachaça and Caipirinha Now Available in All 50 US States

    Leblon, a Brazilian cachaça (sugar cane liquor) that debuted in the US in February ...

    Marking Time

    Yes, there are prosperous and even rich Brazilian blacks. And they are not just ...

    To Brazil’s Lula, Landless Have No Need to Complain

    Brazilian President Luiz Inácio Lula da Silva took advantage of the International Labor Day ...

    Brazil Builds Silos in the Middle East

    Kepler Weber group, from Rio Grande do Sul, is going to supply equipment for ...

    Brazil Will Use Digital TV to Expand the Internet

    Brazil’s Minister of Communications, Hélio Costa, affirmed that there is an expectation that digital ...

    Lula in a Hurry to Set Up a Mercosur Parliament

    During the 28th Mercosur Summit Meeting, Brazil, Argentina, Paraguay, and Uruguay discussed the constitution ...

    Brazil’s Embraer Hands JetBlue First of 101 Jets

    Brazilian aircraft manufacturer Embraer delivered today its first Embraer 190 to American airline JetBlue ...

    Dubai marina

    Brazil Goes After Middle East Petrodollars

    The São Paulo Stock Exchange (Bovespa) expects greater presence of Middle Eastern investment in ...