Braskem and Nexus Circular Strengthen Relationship Through a Long-Term Contract for Circular Plastic Feedstocks from New Advanced Recycling Facility
PHILADELPHIA, Pa. January 23, 2023 - Nexus Circular and Braskem S.A. (B3: BRKM3, BRKM5, and BRKM6; NYSE: BAK; LATIBEX: XBRK) ("Braskem"), the largest polyolefins producer in the Americas, today announced that they have signed a 10-year definitive commercial agreement for the supply of circular feedstocks from a new advanced recycling facility. Braskem completed a strategic investment in Nexus Circular in January 2022.
The contracted volumes of advanced recycled circular products from Nexus will support Braskem's strategic objective to sell 300 thousand metric tons of products with recycled content by 2025 and 1 million metric tons by 2030. Braskem America's CEO Mark Nikolich said, "We look forward to a long and growing partnership with Nexus to secure high-quality feedstock for the production of Braskem's certified circular PP resins. This supports our corporate initiative to develop a carbon neutral circular economy for plastics while supporting our clients' goals for plastics with recycled content."
This project will add to Braskem America's existing sustainable PP and PE portfolio, which currently consists of nine (9) Post-Consumer Recycled (PCR) products including two PCR PP grades that can be used in a wide range of U.S. Food and Drug Administration (FDA) food contact applications where PP is used today. Braskem's full range of PCR solutions can be used in a variety of PP and PE applications, including but not limited to consumer packaging, caps and closures, durable goods, automotive, and consumer housewares.
Nexus Circular is a commercial leader in advanced recycling with proven proprietary technology and a leading process design that converts landfill-bound films and other hard-to-recycle plastics into high-quality feedstocks, which are then used to produce virgin-quality sustainable plastics. Since 2018, Nexus has been consistently supplying commercial volumes of ISCC Plus-certified circular liquid products, having diverted over 8 million pounds of used plastics from landfill.
Jodie Morgan, Chief Executive Officer at Nexus, confirmed, "This long-term commercial contract builds upon the strong foundation of our growing relationship. We are excited to partner with Braskem to accelerate our impact and ability to address the complex challenges of plastics accumulation in the environment."
This press release contains projections and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events. These statements reflect Braskem's current beliefs and expectations with respect to Braskem's business, the economy and other future conditions and are based on assumptions, are subject to risk and uncertainties and are subject to change at any time. Actual events or results may differ materially from those contained in such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the continuation of restrictions related to the COVID -19 Pandemic or the continuing effects of the Pandemic; (ii) the contraction or lack of growth in the market segments in which Braskem competes and in which its products are sold (iii) unexpected delays in commissioning, (iv) increased competition from imports or in the export markets, (v) inability to anticipate future market trends and the future needs of Braskem's customers, (vi) the impact of natural disasters on Braskem's facility and its suppliers and (vii) other factors detailed in documents Braskem files from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
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