Growing at an accelerated pace, Braskem has doubled in size over the last 18 months, advancing in its internationalization strategy and strengthening its operations in the global market.Learn more about some of the projects that are aligned with Braskem's growth strategy, which is based on the diversification of raw material sources, the creation of shareholder value and global expansion.
Ethylene XXI Project in Mexico: The Largest Olefin Petrochemical Complex
Braskem entered into its first joint venture with the Mexican group Idesa, joining the Ethylene XXI project, the company's main greenfield project abroad, which will absorb investments of US$3 billion to produce 1.05 million tons/year of polyethylene made from ethane, whose raw material is natural gas. This is the biggest private investment by a Brazilian company in Mexico.
The core purpose of the project is to meet demand from the Mexican market, which currently imports 1 million tons of polyethylene every year. Located in the Coatzacoalcos Petrochemical Complex in the city of Nachital, state of Veracruz, the new project is scheduled for start-up in early 2015. It is strategically located in an area with easy access to highways, ports and railroads, facilitating product distribution in Mexico and abroad, and also has potential for the construction of new warehouses.
Acquisition of Dow's PP business, with plants in the United States and Europe
Braskem has acquired Dow Chemical's polypropylene (PP) business and now has the highest PP production capacity in the United States, the world's biggest resin market. This acquisition is an important step in Braskem's growth strategy in the Americas.
The transaction involved two industrial units in the United States and two in Germany, with a joint annual production capacity of 1.050 million tons of PP. The plants in the United States are located in Freeport and Seadrift, Texas, and will increase Braskem's U.S. PP production capacity by 50%, giving a total of 1.425 million tons/year. The two German plants are located in the Wesseling and Schkopau complexes and have a joint capacity of 545,000 tons/year.
Studies for the expansion of South American operations
With an eye on expanding its South American operations, Braskem is examining projects in the region through local partnerships, especially in Bolivia, Venezuela and Peru.
Braskem is looking into the feasibility of implementing a gas-chemical complex on the border between Bolivia and Brazil at an estimated cost of US$3 billion. The complex has one major advantage in that it already has a supplier and raw material sources, and the gas is imported across the border through the Bolivia-Brazil gas pipeline. The purpose is to separate the ethane fractions from the gas. Thus the project has the additional advantage of adding value to the imported product.
Braskem is also undertaking feasibility studies into the construction of a petrochemical complex in Peru. Recent discoveries may increase Peruvian production, currently 7 million cubic meters/day, by at least four times. Project viability requires production of at least 30 million cubic meters/day in order to produce one million tons/year of polyethylene, the Peruvian project's estimated capacity.
Braskem's projects in Venezuela have been restructured recently. The main changes involved changing the site and scale of the future polypropylene plant, under the responsibility of Propilsur, thereby keeping the project on schedule and reducing the investments required by approximately 60%. Feedstock supply should be sufficient to build a polypropylene plant with a capacity of 300,000 tons/year.In addition, the Polimerica project envisages the construction of three polyethylene plants with a combined production capacity of 1.1 million tons/year, integrated with an ethylene production unit with a capacity of 1.3 million tons/year, involving investments of close to US$3 billion.