Braskem to invest $23M in specialty LLDPE

Published: October 21, 2013 11:11 am ET
Updated: October 21, 2013 11:13 am ET

Related to this story

Topics Materials, Materials Suppliers, K 2013, Business News & Features

DÜSSELDORF, GERMANY — Braskem SA, a leading producer of thermoplastic resins and the world’s largest biopolymers producer, is investing $23.1 million to expand its production capacity of linear low density polyethylene by 120,000 metric tons per year in Brazil, the company announced Oct. 17.

Of that amount, 100,000 tons will be part of the Braskem Flexus line, the company’s brand for metallocene-based PE. Braskem will convert one of its industrial lines for PE in the Camaçari petrochemical complex in Bahia state for new production of this resin, which is being promoted as the latest technology in resins for plastic film.

Camaçari is also the location of a potential new joint venture plant under study by global styrenics leader Styrolution Group and Braskem, which would have annual capacity of about 220 million pounds for ABS, styrene acrylonitrile and specialty styrenics, the companies said on Oct. 14.

Engineering studies have been completed for conversions at the Camaçari complex, and Braskem projects the new production line will be operational by the first half of 2015, according to Luciano Guidolin, vice president of polyolefins.

“We are expanding our selection of products from the Braskem Flexus family in order to ensure support for the growth of our customers in market segments that require high-technology resins,” he said.

Braskem Flexus products are increasingly being used in packaging that requires greater resistance, gloss, transparency and sealing, the company said. They’re intended for processing applications in specialty films, reel technique and industrial films.

“With this investment, we can meet the growth demanded by the market in the coming years, in addition to meeting the needs of our customers for films with better performance,” said Edison Terra, director of PE business.

Braskem (Hall 6/D27) has led the Latin American market since 2004 in production of metallocene-based PE, with capacity of more than 350,000 tons per year.

The company also launched a national program in September, dubbed the Plastic Chain Incentive Plan, to incentivize manufacturing throughout the plastics production chain in Brazil. The plan will offer incentives to Brazilian customers that increase domestic production of processed plastic goods for export.

Braskem also announced it is investing $3.2 billion in building a manufacturing plant in Mexico.

The Idesa complex will produce 1.05 million tons of polyethylene a year and will allow the company to diversify its feedstocks.

“Braskem has an ample spectrum of sources of raw materials, including competitive and renewable ones, as is the case with our green plastic production,” the company said in a news release. “This positioning, and especially our presence in highly dynamic markets, gives our clients a guarantee of a privileged position regarding international operations.”

The company told Plastics News that Mexico is currently underserved by domestic suppliers and that the investment will also enable it to grow its global business, as well as benefit from the “significant economic advantages” that come from using shale gas from the U.S.

“The feedstock in Mexico is not sourced from shale gas, but it is priced by U.S. shale gas pricing, so it is very competitive,” said a spokesperson.

The company is also exhibiting its new products in Europe for polypropylene: homopolymers, impact polymers and random copolymers at K 2013.


Comments

Braskem to invest $23M in specialty LLDPE

Published: October 21, 2013 11:11 am ET
Updated: October 21, 2013 11:13 am ET

Post Your Comments


Back to story


More stories

Image

2014 sees modest sales increase, but profit decrease, for Dow Chemical

January 29, 2015 4:20 pm ET

Dow Chemical Co. delivered modest sales growth in 2014, but the firm's profit took a tumble.    More

Image

Resin prices continuing to tumble

January 29, 2015 2:24 pm ET

The ongoing slide in crude oil prices is taking commodity resin prices down as well.    More

Image

Materials firms look for stock rebound

January 29, 2015 1:52 pm ET

DuPont Co., A. Schulman Inc. and Rogers Corp. thrived amid the stock market chaos of 2014, but the other 12 publicly held materials firms tracked by...    More

Image

Chemtrusion, Mytex Indiana compounding plant set for expansion

January 29, 2015 1:35 pm ET

Japanese and American partners in a compounding plant in Indiana plan to expand the facility.    More

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the fast...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

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

Upcoming Plastics News Events

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

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events