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

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

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Image

Dow sees solid second quarter performance

July 29, 2014 11:19 am ET

Dow Chemical Co. has reported its second quarter figures, with its seventh consecutive quarter of growth, according to the company.More

Image

Evonik sells polyimide foams operation to Boyd

July 29, 2014 10:46 am ET

Modesto, Calif.-based Boyd Corp., a manufacturers of specialty material and sealing agents, has purchased Evonik Industries’ Solimid...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events