Braskem Advances Polypropylene Project Growth Strategy in U.S.

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Researched by Industrial Info Resources (Sugar Land, Texas)--Illustrating its confidence in the U.S. market, Brazilian petrochemicals giant Braskem (NYSE:BAK) (Sao Paulo) plans to start construction this summer on a 450,000-ton-per-year polypropylene (PP) production line at its site in La Porte, Texas. Braskem has been steadily increasing its presence in the U.S. via its slate of PP projects.

Braskem announced Thursday that its board of directors made the final investment decision to proceed with the project. To be called Delta, the facility will be built next to existing production facilities on Braskem's 200-acre site in La Porte. Braskem said the engineering design phase is "well under way," and is targeting the final phase of main construction for the first quarter of 2020. For more information, see Industrial Info's project report.

Braskem Chief Executive Officer Fernando Musa said in a press statement: "Leveraging the success of shale gas energy production, North America has among the most attractive feedstock profiles worldwide in terms of access to low cost sources of feedstock and the depth of suppliers. With no new polypropylene plants added since 2005, North America also transitioned to being a net importer of polypropylene in 2016. As such, our additional investment in the United States is a logical extension of our global growth strategy."

Industrial Info is tracking more than $1 billion in active Braskem capital projects globally. For related information, see November 22, 2016, article - Brazil's Braskem Pushes Polypropylene Production Projects in U.S.


Braskem is among several overseas chemicals producer seeking to take advantage of the U.S. shale boom. Speaking last week at the Downstream Engineering, Construction & Maintenance Petrochemical Update conference in New Orleans, Louisiana, American Chemistry Council (ACC) President and Chief Executive Officer Cal Dooley estimated that more than 62% of the current and planned investments in U.S. petrochemical capital projects comes from foreign sources. Even with falling oil prices, the U.S. will continue to reap the benefits of cost-competitive natural gas feedstock for the foreseeable future, he said. For related information, see June 20, 2017, article - BASF Invests Heavily in U.S. Chemical Projects and June 21, 2017, article - Proponents of Appalachia Ethane Hub, PetChem Buildout Seek Federal Study.

"This approval, coming in advance of the expected 4Q17 approval date, shows the strength and confidence in the market," said Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry. On a related note, Braskem's plans for an East Coast ethane cracker and petrochemical complex in West Virginia on the East Coast is currently on hold, but not cancelled, "meaning it still has a potential in the future at this point," he said. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.