21 June 2017
DETAILS
The Board of Directors of Braskem,
has announced
the approval of a $675 million investment
for the construction of
a new polypropylene (PP) production facility
in the city of La Porte, in the state of Texas.
The investment in the new industrial plant
reinforces Braskem's leading position
in the production of this thermoplastic resin
in the United States, where the company already owns
* five other PP industrial units, as well as
* a high-value polyethylene production line (UTEC).
The construction of the new La Porte plant
is expected to begin this year and
to be completed by the first quarter of 2020.
The new Braskem plant will have
a production capacity of 450,000 metric tons
of polypropylene per year.
Its commissioning will be added to the production
of the existing Braskem unit located in La Porte,
which has a capacity of 354 thousand metric tons per year.
The construction will occupy part of the 800,000 m² area
of the Company's complex in the region,
located 40 kilometers from Houston,
and will be able to take advantage of
the existing support infrastructure,
benefiting from the connection
for the receipt of raw materials and utilities,
the rail network, central control room
and testing facilities, emergency response equipment,
waste treatment facilities, and other synergies.
The announcement of the new polypropylene plant
is added to the commencement of the operation
of the UTEC plant,
a brand developed by Braskem
for Ultra-High-Molecular-Weight Polyethylene (UHMWPE),
also at the La Porte plant. In the United States,
Braskem currently has
* three PP plants located in Texas,
* one unit in Pennsylvania, and
* a fifth plant in West Virginia,
totaling a production capacity
of approximately 1.5 million metric tons per year.
Braskem also produces
polypropylene in Brazil and Germany.
Fernando Musa,
President of Braskem
"The authorization to continue investment
in the production of polypropylene in the United States
is the latest milestone in Braskem's internationalization strategy.
The new world-class petrochemical plant
will add substantial production capacity in the region
and will help us meet the growing demand of our customers,
reaffirming our position as
* the largest polypropylene producer in the Americas and
* the third largest resin producer in the world,"
With the competitive advantage of shale gas energy production,
North America has one of the most favorable raw material mixes
in the world in terms of access to low-cost input sources and suppliers.
"With its latest polypropylene plant, launched in 2005,
North America began depending on the importation
of the product in 2016. Thus, additional investment
in the United States is a natural step in our strategy,"
For more information, please contact:
CDN Communication
Ana Beatriz Paschoal (55 11) 3643-2737 - anabeatriz.paschoal@cdn.com.br
Rafael Abrantes - (55 11) 3643-2772 - rafael.abrantes@cdn.com.br
Priscila Ventura - (55 11) 3643-2744 - priscila.ventura@cdn.com.br
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