SAO PAULO, Brazil, June 6 /PRNewswire/ --
Braskem (BOVESPA: BRKM3, BRKM5, BRKM6; NYSE: BAK; LATIBEX: XBRK) announces investments in the Southern Petrochemical Complex of more than R$1.0 billion over the next three years, as well as the decision to produce green polyethylene in the state of Rio Grande do Sul.
The highlight of this new investment commitment is the decision to install the green polyethylene project at the Southern Complex, with estimated investments of R$400 to R$500 million. The project will be the first commercial-scale operation in the world to produce green polyethylene made from 100% renewable feedstock.
The green polyethylene project is expected to have annual production capacity of 200,000 tons and to generate annual revenue of approximately US$400 million. The feedstock for the plant will be received through the Santa Clara Terminal, and the ethanol used will initially be acquired in the Southeast region of Brazil. The project will consume approximately 450 million litters of ethanol.
Once the project is formally approved by Braskem's Board of Directors, initial investments should begin by the year-end, with the unit's operational startup expected in 2010.
The potential demand for the green polyethylene already identified by Braskem is roughly three times higher than the capacity of the plant to be installed at the Southern Petrochemical Complex. The resin has applications in markets such as blow molding packaging for food and hygiene products, and injected molding packaging for home appliances, toy and automotive industries. Green ethylene is a highly valued niche, with clients willing to pay a premium of between 20% and 30% over traditional resin prices, with strong demand particularly from countries where environmental issues are more prominent, such as Europe, United States and Japan.
The investment program is aligned with Company's strategy of growth with value creation, with the aim of making Braskem one of the ten largest petrochemical companies in the world. In this context, Braskem has been investing to expand all of its industrial units also in the states of Alagoas and Bahia, and has just inaugurated a new polypropylene plant in Paulinia, in the state of Sao Paulo, with annual production capacity of 350,000 tons.
Luiz Henrique Valverde, +55-(11)-3576-9744, or Luciana Paulo Ferreira, +55-(11)-3576-9178, or Silvio Nonaka, +55-(11)-3576-9471, all of Braskem