Braskem completes renewal of raw material supply contracts in Brazil with Petrobras. The contracts, with a five-year term, guarantee petrochemical naphtha for the Braskem industrial unit in São Paulo and ethane and propane for its industrial unit in Rio de Janeiro. The contracted annual volume is of up to 2 million tons of naphtha for São Paulo and up to 580 thousand tons of ethylene equivalent from ethane and propane to Rio de Janeiro, with prices based on international benchmarks.

"This renewal provides supply security of raw materials to Braskem crackers in Rio and São Paulo with prices based on international benchmarks. The renewal will enable our assets in Brazil to continue with the priority to supply the domestic market and that of South America. In addition, it allows for attracting investments and new business to the petrochemical industry, which are essential for the industrial activity in Brazil", states Edison Terra, Braskem Vice President for Olefins and Polyolefins South America.

In June, Braskem had announced the signature of two five-year contracts with Petrobras for the supply of petrochemical naphtha, one focused on supplying the industrial units in Bahia and another for supplying the plants in Rio Grande do Norte. Through these contracts, Braskem has ensured a minimum annual supply volume of 650,000 tons and, at the discretion of Petrobras, of an additional maximum volume of up to 2.8 million tons per year.