Braskem to Build a New Polypropylene Plant

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Researched by Industrial Info Resources (Sugar Land, Texas). Braskem (NYSE:BAK), a leading thermoplastic resin producer in Brazil and Latin America, has announced the installation of a new plant in Bahia State, North-Eastern Brazil, where the company owns seven other plants. This will be the first polypropylene plant that company will build in the area, and will be located in Camacari Municipality.

Construction work will begin in 2008 and will require a $300 million investment. Although, implementation of the new plant is still under study, Braskem expects to inaugurate it in 2009. The company has fourteen plants throughout the country, seven of which are located in Bahia State; however, the company's Basic Supply Manager, Manoel Carnauba, stated that future new projects in the area are uncertain due to the current insecurity regarding gas supply in the state. Braskem needs Petrobras to state how much gas supply will be available in the area in the near future.

Braskem produces 6 million tons per year of thermoplastic resins and other basic petrochemical products, representing 45% of Brazil’s total basic petrochemicals and solvents, which are used as raw materials by different types of companies when producing plastic containers and materials used in the car and construction industries. Last year it registered a $7.4 billion profit and at present, it employs 3,000 people in Brazil. Braskem aims at maintaining its prevalence over Latin America and Brazil’s domestic resins market.

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