LA PORTE, Texas and
PHILADELPHIA, June 22, 2017 /PRNewswire/ -- Braskem
(BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX:
XBRK), the leading thermoplastics resins producer in the Americas,
today announces that the Company's Board of Directors has formally
approved the final investment decision to proceed with the largest
polypropylene (PP) production line in the Americas. Braskem will
commit up to $675 million in investment capital towards
the design and construction of the new facility which will be named
Delta and will be located next to
Braskem's existing production facilities in La Porte, Texas, U.S.
Fernando Musa, Braskem Chief
Executive Officer, stated, "Our approval to proceed with the
capital investment in Delta is the
latest major milestone in Braskem's global growth strategy. This
new world-class petrochemical facility will bring important new
North American production capacity to help us meet the growing
demand from our clients, reaffirming our position as the leading
producer of polypropylene in the Americas and the third largest in
the world."
"Leveraging the success of shale gas energy production,
North America has among the most
attractive feedstock profiles worldwide in terms of access to low
cost sources of feedstock and the depth of suppliers. With no new
polypropylene plants added since 2005, North America also transitioned to being a net
importer of polypropylene in 2016. As such, our additional
investment in the United States is
a logical extension of our global growth strategy. By increasing
our production capacity in close proximity to customer demand,
attractive feedstock as well as established export channels, we
believe Delta will serve our
clients well and offer an attractive return on our investment for
our shareholders. This investment is a true vote of confidence in
the future of Braskem and a testament to our commitment to meeting
our clients' needs," concluded Mr. Musa.
With the engineering design phase well underway, the new
production line will have a manufacturing capacity of 450 kilotons
(kt), or the equivalent of approximately 1 billion pounds, per
year. Construction will take place on part of the approximate 200
acres of land at Braskem's current La
Porte facility footprint which is located 26 miles from
Houston. The new line will
represent additional production capacity of homopolymers, random
copolymers, impact copolymers, and reactor TPOs, building upon
Braskem's current polypropylene production plant in La Porte which has a production capacity of
354 kt annually and will continue operations. Today's announcement
also builds upon the momentum of Braskem's recent launch of its new
UTEC Ultra High Molecular Weight Polyethylene (UHMWPE) production
plant located at the same La Porte
site.
Delta will benefit from
significant existing support infrastructure already in place to
accommodate the new line including feedstock and utilities
connectivity, rail infrastructure, central control room and testing
facilities, emergency response equipment, waste treatment
facilities and more.
The construction of Braskem's new Delta PP production line is
expected to positively impact economic activity in the region,
employing approximately 1,000 development and construction workers
to fully construct the facility. Upon final completion, the company
expects the new line to bring an additional 50 Braskem permanent
full-time jobs to the La Porte
community.
Construction is expected to begin mid-summer, with the final
phase of main construction targeted for the first quarter of 2020.
The facility design is being developed directly in-line with
Braskem's commitment to sustainability and attention to
eco-indicators such as emissions, water and energy efficiency, as
well as recycling and waste reduction.
For additional information on Braskem's new Delta production line announcement and
progress please visit www.braskem.com.br/usa/delta.
ABOUT BRASKEM
Braskem is one of the world's leading plastics and chemical
companies with 41 industrial plants in Brazil, the United
States, Germany and
Mexico.
Braskem is the largest producer of thermoplastic resins in the
Americas and the leading producer of biopolymers in the world,
creating more environmental-friendly, intelligent and sustainable
solutions through chemicals and plastics. Known for innovative
solutions such as I'm green Polyethylene™ made from renewable
sugarcane and UTEC®, the company's own trademarked Ultra
High Molecular Weight Polyethylene for high performance
applications, Braskem's products and technologies enable the
automotive, packaging, healthcare, and construction industries to
produce goods that enhance quality of life for people around the
world.
Braskem America is an indirect wholly owned subsidiary of
Braskem S.A. headquartered in Philadelphia. The company is the leading
producer of polypropylene in the United
States, with six production plants located in Texas, Pennsylvania and West Virginia, and an Innovation and
Technology Center in Pittsburgh.
For more information, visit www.braskem.com.
This press release contains projections and other
forward-looking statements (within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended) regarding future
events. These statements reflect Braskem's current beliefs and
expectations with respect to Braskem's business, the economy and
other future conditions and are based on assumptions, subject to
risk and uncertainties, and are subject to change at any
time. Actual events or results may differ materially from
those contained in such forward-looking statements. Important
factors that could cause actual results to differ materially from
the forward-looking statements contained herein include, without
limitation: (i) the contraction or lack of growth in the market
segments in which Braskem competes and in which Braskem products
are sold (ii) unexpected delays in commissioning Delta, (iii) increased competition from
imports, (iv) inability to anticipate future market trends and the
future needs of Braskem's customers, (v) the impact of natural
disasters on Braskem's La Porte
facility and its suppliers and (vi) other factors detailed in
documents Braskem files from time to time with the Securities and
Exchange Commission. Forward-looking statements in this
release are made pursuant to the safe harbor provisions contained
in the Private Securities Litigation Reform Act of 1995.
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SOURCE Braskem