Notices and Material Facts

Material Fact - Braskem announces the partial return of its subsidiary Braskem Idesa operations

BRASKEM S.A.
Corporate Taxpayer ID (CNPJ): 42.150.391/0001-70 
Company Registry (NIRE): 29.300.006.939
Publicly-Held Company

MATERIAL FACT

Braskem S.A. ("Braskem" or "Company"), in compliance with CVM Instruction 358/02 and complementing the Material Fact notice dated December 2, 2020, announces to its shareholders and the market that its subsidiary Braskem Idesa ("BI") resumed partially its polyethylene production based on an experimental business model, in accordance with the applicable safety standards and reducing the impact on the Mexican plastic industry's supply chain. 

The Company further informs that legal measures have been initiated by BI, as established in the Ethane Supply Agreement entered into between BI and PEMEX, and by Braskem Netherlands B.V, BI´s direct shareholder, based on applicable international rules, to enforce legal and contractual rights of BI and its parent company and seeking to protect its investment in Mexico. Such measures include a remediation and negotiation period during which it will seek a resolution between the parties.

The Company informs that BI remains subject to an adverse scenario due to the interruption of the natural gas transportation and cannot estimate, at this moment, the date for the full return of BI activities or the impact of the disruption of such activities.

Lastly, BI reinforces its commitment to Mexico and to the pursuit of constructive alternatives to resolve the ethane shortage in the country. The Company will keep the market informed of developments to the extent required by law.

 

For more information, contact Braskem's Investor Relations Department by calling +55 (11) 3576-9531 or sending an e-mail to braskem-ri@braskem.com.br.

São Paulo, January 7, 2021.
Pedro van Langendonck Teixeira de Freitas
Chief Financial and Investor Relations Officer
Braskem S.A.

 

DISCLAIMER ABOUT FORWARD-LOOKING STATEMENTS

This Material Fact notice may contain forward-looking statements These statements are not historical facts, but are based on the current view and estimates of the Company's management regarding future economic and other circumstances, industry conditions, financial performance and results, including any potential or projected impact related to Braskem Idesa on the Company's business, financial condition and operating results. The words "forecasts," "believes," "estimates," "expects," "plans" and other similar expressions, when referring to the Company, are intended to identify forward-looking statements. Statements related to the possible outcome of legal and administrative proceedings, implementation of operational and financing strategies and investment plans, guidance about future operations, as well as factors or trends that affect the financial condition, liquidity or operating results of the Company are a few examples of forward-looking statements. These statements reflect the current views of the Company's management and are subject to diverse risks and uncertainties, many of which are beyond the control of the Company. There is no guarantee that said events, trends or expected results will actually occur. The statements are based on several assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any change in such assumptions or factors, including the projected impact related to Braskem Idesa on businesses, employees, service providers, shareholders, investors and other stakeholders of the Company can cause actual results to differ significantly from current expectations.  For a comprehensive description of the risks and other factors that could impact any forward-looking statements in this document, especially the factors discussed in the sections, see the reports filed with the Brazilian Securities and Exchange Commission (CVM).