MARCUS HOOK, PA. (July 11, 3 p.m. ET) — Braskem SA will invest $56 million and create at least 28 new jobs as part of a deal to acquire Sunoco Inc.'s propylene splitter assets and retain its PP operations in Marcus Hook.
Pennsylvania officials announced the plans July 11, saying the state offered Braskem $15 million in state support to retain production at the polypropylene facility.
São Paulo-based Braskem opened the facility in 2010, using propylene produced by Sunoco as an offshoot of its gasoline refinery in Marcus Hook, but the future of that site was placed in doubt when Sunoco decided to shutter the unprofitable refinery.
Braskem officials said earlier this month that it had secured a source for its Marcus Hook operation. The announcement from Pennsylvania clarified the future for the facility, saying the project retains 119 jobs that otherwise could have been shifted to other sites if Braskem opted to consolidate PP production elsewhere.
"The acquisition of the splitter reinforces our position as the leader in Polypropylene in the United States and ensures the future of our Marcus Hook operations," said Braskem America CEO Fernando Musa.
Pennsylvania officials noted that the deal also requires Braskem to retain 90 jobs at its Philadelphia headquarters and 10 jobs as its technology center in Pittsburgh.
Braskem acquired the PP resin plant from Sunoco, who in turn had acquired the plant from Epsilon. The PP resin plant was operating under the Epsilon name in the mid-1990's, obtaining propylene monomer from the Sunoco refinery.