Brazilian plastics giant Braskem SA is now the largest polypropylene resin supplier in the United States. Today the company closed on its $323 million purchase of Dow Chemical Co.'s PP business. The deal which was first announced July 27, includes two U.S. plants and two in Germany, with total annual capacity of 2.3 billion pounds. Mark Nikolich, formerly VP of commercial and supply chain for Braskem America, has been named CEO and general manager of Braskem Europe GmbH. Robert Nadin, formerly VP of innovation and technology for Braskem America, has been appointed VP of commercial and supply chain for polypropylene in North America. As Plastics News' Frank Esposito has reported, this deal comes at an interesting time for the North American PP market, which has been rocked this year by extreme price volatility. Increased use of natural gas feedstocks has reduced the amount of propylene monomer available to make PP in the region. Natural gas-based ethane feedstocks make less propylene per unit than do feedstocks based on crude oil-based naphtha. The supply-demand situation got even more interesting earlier this month, when Phillips Sumika Polypropylene Co. announced it was closing its 700 million pound-per-year PP resin plant in Pasadena, Texas.
Braskem completes purchase of Dow PP business
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]