Braskem faces losses from Brazil blackout

Bob Moser
PLASTICS NEWS CORRESPONDENT

Published: September 6, 2013 1:45 pm ET

Related to this story

Topics Materials Latin America Materials Suppliers
Companies & Associations

SÃO PAULO, BRAZIL — Braskem SA will lose nearly BRL50 million ($21.9 million) due to a blackout in Brazil's northeast last week that interrupted production at its plants, President Carlos Fadigas said Friday during an event in São Paulo.

The financial loss, which Fadigas deemed a preliminary calculation, will impact Braskem's third quarter financial results. A blackout hit Brazil's northeast last week for around three hours, affecting a majority of cities in the region.

The financial value represents the cost of interruption at the company's plants in the states of Bahia and Alagoas, the length of time the plants were idle, and the cost of restarting machinery. Braskem plants in the two states required four to five days to resume operations.

Braskem's estimated losses do not take into consideration the potential increase in costs that will occur in the near future, to the tune of a few million reais, if more costly power must be purchased by the company's plants. A majority of Brazil's energy in the northeast comes from hydroelectric and wind power plants.

Braskem's losses could have been worse, the company's president said, if not for investments that had already been made to ready its plants for blackout scenarios.

The company has invested in loss prevention and blackout recovery plans since February 2011, when the country's last major blackout resulted in Braskem needing four months to return some plants to full production.


Comments

Braskem faces losses from Brazil blackout

Bob Moser
PLASTICS NEWS CORRESPONDENT

Published: September 6, 2013 1:45 pm ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they...    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

SiVance opens new R&D lab

April 23, 2015 12:07 pm ET

Milliken & Co. unit SiVance LLC has opened a new research and development lab for silicone and silane technologies in Gainesville, Fla.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events