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Braskem to cut Capex in 2020 by at least 10% due to coronavirus

April 14/2020

MOSCOW (MRC) -- Brazilian petrochemical company Braskem SA expects to cut its Capex prediction for this year, of 3 billion reais (USD578 million)is by at least 10%, reported Reuters with reference to chief financial officer Pedro Freitas' statement in a webcast on Wednesday.

Braskem has drawn USD1 billion in revolving credit lines as an insurance against the coronavirus crisis, the CFO said.

The companys cash position was USD3.3 billion in late 2019 and that the company issued additional USD2.25 billion in bonds maturing in 2030 and 2050.

As MRC informed earlier, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).


mrcplast.com
Author:Margaret Volkova
Tags:PVC, PP, PE, LLDPE, homopolymer PP, propylene, HDPE, ethylene, Braskem, Brazil, Russia, USA.
Category:General News
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