MOSOCW (MRC) -- Brazilian petrochemical company Braskem said it will invest about 50mn reais (USD23mln) in increasing its production capacity of linear low-density polyethylene (LLDPE) by 120,000 tonne a year, said the company in its press release.
Of this total, 100 kton correspond to the Braskem Flexus family, which is the brand under which Braskem's metallocene-based polyethylenes are sold. The Company will convert one of its polyethylene production lines to offer a resin that employs the latest technology in plastic films manufacturing. The decision attests to Braskem's commitment to furthering the development of Brazil's plastics production chain.
The unit located in the Camacari Petrochemical Complex in the state of Bahia will have a line fully dedicated to the resin's production. Braskem has already concluded the engineering studies for the plant's conversion. The production line is expected to start operations in the first half of 2015. "We are expanding our offering of products in the Braskem Flexus line to support our clients' growth in market segments that demand high-tech resins," explained Braskem's vice-president of polyolefins, Luciano Guidolin.
"With this investment, we will be able to meet the growth of the Brazilian market over the coming years and to serve our clients' need for films with higher performance," said Edison Terra, Braskem's polyethylene business director.
Braskem Flexus is used in packaging that requires specific features, such as increased resistance, gloss, transparency and sealing properties. The product line targets manufacturers of specialty films, technical reels and industrial films.
Since 2004, Braskem has led the Latin American market in supplying metallocene-based polyethylenes, with production capacity in excess of 350 kton/y. The Company also offers an application engineering structure that clients can use to develop specific formulations for their films.
As MRC wrote before, Braskem is participating in the bidding to acquire the polyvinyl chloride (PVC) assets of Belgium's Solvay in South America. Braskem said the negotiations had not yet concluded and it could not say when they would be completed.
Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC