Seeking to create value for its shareholders and increase competitiveness throughout the petrochemical and plastics production chain, Braskem maintains its commitment to sustainable growth and development by pursuing goals in the following three areas:
- Commitment to meet the growing domestic demand for thermoplastic resins, adding value to existing chains.
- Strategically positioned to access future opportunities of competitive feedstock.
- Commitment to the development and competitiveness of the Brazilian petrochemical and plastics chain.
- Expand its presence in countries with competitive feedstock.
- Become the preferred business partner to develop the petrochemical industry in Latin America.
- Take advantage of the Brazilian ethanol and bring innovative solutions to ensure the sustainability of the petrochemical chain.
- Develop new path for growth through the use of renewable raw materials.
- PVC plant in Alagoas:
Aiming to meet the increasing demand for PVC in Brazil and add value to existing chains, Braskem announced, in May 2010, the construction of a new plant in the state of Alagoas, with a production capacity of 200 kton/year of PVC. The new plant features cutting-edge technology, which allows for gains in productivity and operational costs, and uses the surplus volume for EDC (ethylene dichloride) which was previously exported.
It was the Company's largest project and was concluded within a period of 22 months with 10 million man-hours and no injuries. The project created around 3,800 direct jobs during the construction, 700 of which through the program to develop local labor.
The new plant started operating in 2Q12 and reached its normalized capacity utilization rate already in 3Q12 .
The project was financed by two financing facilities: (i) R$525-million line from the BNDES with total term of 9 years, 88% of which denominated in Brazilian real with a cost of TJLP+1.46%; (ii) and R$200-million line from BNB with total term of 12 years and interest of 8.5% p.a..
- Butadiene Expansion:
The project, which was approved in the end of March 2011 by the Board of Directors, with a capacity of 100 kton/y and located at Triunfo Petrochemical Complex, increased Braskem's butadiene supply by approximately 30% to 446 kton/y. By taking advantage of the existing crude C4 stream, the project will meet growing world demand for butadiene.
Started in 2011 and concluded within a period of 14 months, the expansion created 1,800 jobs during the period, with 2.9 million man-hours without injuries.
The beginning of the plant's operations was accelerated by one month to June 2012, and the new plant reached its normalized rate in 3Q12.
The investment of approximately R$300 million was financed through pre-sale contracts amounting to R$200 million and a BNDES credit line of up to R$176 million with total term of 9 years and interest of TJLP + 2.68%.
- Metallocene-based LLDPE:
In 2014, the Company completed its investment in the expansion and conversion of one of its polyethylene production lines in Bahia to produce metallocene-based LLDPE. This resin, of more modern technology, will supply the industry of plastic films.
- Feedstock flexibility project in Bahia:
The project includes investments of R$380 million to enable the cracker in Bahia to use ethane for up to 15% of its feedstock. The project also includes the retrofitting of the plant and adaptation of the port infrastructure, and is scheduled to start operating in the second half of 2017. Braskem also signed a 10-year contract with an affiliate of Enterprise Products for the supply of ethane imported from the United States at a price based on the Mont Belvieu international reference price.
- Long-term propylene supply agreement with Enterprise:
Braskem signed a propylene supply agreement with Enterprise Products, which is building a propane dehydrogenation plant (PDH) in Texas with annual production capacity of 750 kton that is slated for startup in 2017. Under the 15-year agreement, Enterprise Products will supply sufficient propylene to meet approximately 16% of the needs of the United States unit, at a propylene price based on the international reference for propane.
- Mexico Project - Ethylene XXI:
Given its goal to expand internationally and gain access to a competitive feedstock , the joint venture between Braskem and IDESA, with interests of 75% and 25%, respectively, participated in a natural gas auction, held at the end of the 2009, and got a contract whose point was to build a new integrated industrial complex in Mexico. Located in the state of Veracruz, in the Coatzacoalcos region, the Ethylene XXI Project involves the production of around 750 kton of high-density polyethylene and 300 kton of low-density polyethylene using ethane as feedstock, and is based on an ethane supply agreement with PEMEX-Gás for delivery of 66,000 barrels/day for 20 years based on the North American reference price (Mont Belvieu).
Total investment (including CAPEX, inflation, contingencies, interest and working capital) is estimated at roughly US$5.2 billion, of which: US$3.2 billion was financed using a project-finance model (70% debt and 30% equity) and US$2.0 billion through controlling shareholders' contribution. The project finance structure was concluded in December 2012, with the execution of the main agreements.
As part of the gradual ramp-up of the petrochemical complex in Mexico launched in December 2015 with the utilities area, Braskem Idesa successfully completed the startup of the cracker and the specification of ethylene in March 2016. In April, the petrochemical complex reached another important milestone with the production of its first lot of PE after the startup of the first PE plant.
- New UTEC project in the US:
The project includes investments of approximately US$35 million for the production of the ultra-high molecular weight polyethylene resin UTEC in La Porte, Texas. The plant in the United States will complement the production capacity of the existing UTEC line in Brazil at the petrochemical complex in Camaçari. Developed using 100% Brazilian technology, UTEC resin has applications across a wide range of industries, such as oil drilling and construction. The plant's startup is slated for the second half of 2016.
In September 2010, Braskem concluded, within the estimated schedule and budget, the installation of its first project to produce Green Polyethylene in Brazil. This marked the start of an ethylene plant using sugarcane ethanol as feedstock. The 200 ktons/year plant, which is located in Triunfo, Rio Grande do Sul, required investment around R$500 million. As a result, Braskem has become the world´s largest producer of biopolymers.