Braskem is inaugurating a new cycle of investments at the Triunfo Petrochemical Complex starting by consolidating the sector in the south through an investment of more than R$ 1.0 billion scheduled over the next 3 years and the decision to produce green polyethylene in Rio Grande do Sul. This investment program is in line with the company’s growth with the creation of value strategy that aims at making Braskem one of the ten largest companies in the sector in the world.

Ever since it announced the acquisition in March 2007, Braskem has invested nearly R$ 300 million in the state, especially for the ETBE project, an automotive bioadditive produced from ethanol, and the modernization initiatives and technological updating made during the recent scheduled maintenance period at Copesul. "Approval of the investment agreement with Petrobras, which allocated its shareholder participation in Copesul, Ipiranga Petroquímica, Ipiranga Química and Petroquímica Paulínia, will permit accelerating our growth programs in Rio Grande do Sul", says José Carlos Grubisich, president of Braskem.

The alignment of interests with the government of Rio Grande do Sul in the sense of encouraging competitiveness in the state’s petrochemical and plastic production chain was an important factor that helped determine Braskem’s investment plan. "Our decision is recognition of the advances achieved to make the environment more favorable for new investments starting with the RS Competitivo revitalization program and the state government’s commitment to fiscal and financial discipline. It also valorizes the state’s return to a period of growth, its vocation as an innovation and technological project center as well as the pool of available talents in the region," adds Grubisich.

The investments announced for Rio Grande do Sul are part of Braskem’s growth strategy. The company has been investing to expand all its industrial units in Alagoas and Bahia as well, and has just inaugurated a new polypropylene plant in Paulínia, in the state of São Paulo, with capacity to produce 350 thousand tons per year.

The highlight of this investment commitment has been the decision to install the green polyethylene project in Triunfo, with estimated investments of between R$ 400 and R$ 500 million. This will be the first commercial scale operation in the world to produce green polyethylene from 100% renewable raw material. This pioneerism is the result of the priority Braskem gives innovation and technology, one of the corporate strategy pillars, which has permitted certification of the first green polyethylene. The initiative also corresponds to its commitment to contribute towards sustainable development, opening the way for the use of renewable raw materials.


The green polyethylene project will have the capacity to produce 200 thousand tons per year with projected earnings of about US$ 400 million/year. The raw material will be received through the Santa Clara Terminal. The alcohol will initially be acquired in the southeast. However, the intention is to prioritize the consumption of local ethanol from raw material production in the state. "Braskem’s annual consumption of ethanol will be approximately 700 million liters, 450 million of which will be for this project," says Grubisich. This volume is similar to the current demand for alcohol in RS, which is around 500 million liters/year.

The beginning of the project’s physical installation, once approved by the Braskem Board of Directors, should be in 2008 and it will generate 1.5 thousand direct jobs during the works phase. The unit is projected to start operations in 2010 and it will be responsible for generating approximately 100 direct and 7000 indirect jobs, according to BNDES studies.

At present, Braskem produces about 12 annual tons of green polyethylene at the pilot unit installed in its Technology and Innovation Center. This production is being made available for tests at world leaders in their segments of operation, whether in the Brazilian or international market, who are interested in associating their products with the concept of sustainability. The first commercial product with Braskem’s green polyethylene was announced this week in partnership with Brinquedos Estrela, the Sustainable Monopoly, which combines leisure and environmental education.

The potential demand already identified by Braskem for green polyethylene is about three times greater than the capacity of the plant to be installed in Triunfo. The resin has applications in markets such as blown packaging for foods and hygiene products, injected packaging for household appliances and the toy and automobile industries. This is a much valorized niche that is willing to pay a 20% to 30% bonus in comparison to the price of traditional resin, with strong demand mainly in countries where the environmental issue has the most importance, like Europe, USA and Japan.

Besides this investment, it is worth noting the expanded production of electric energy by 45 MW at Copesul, which should go into operation in 2010.