MOSCOW (MRC) -- Brazilian petrochemical company Braskem SA has agreed to buy a controlling stake in environmental services company Cetrel SA for 610 million reais (USD194 million) from Odebrecht Utilities SA, Braskem said on Friday in a securities filing, reported Reuters.
Odebrecht Utilities is an arm of Brazilian engineering group Odebrecht SA, which is ensnared in the country's largest-ever corruption scandal.
The deal is subject to approval by Braskem's board.
Cetrel SA operates in the Camacari petrochemical complex in the northeastern Brazilian state of Bahia. The company serves several companies in the area, including Braskem, processing industrial waste.
As MRC wrote previously, Braskem plans to modify its steam cracker in Bahia, Brazil, for the use of up to 15% ethane feedstock, which will be supplied under a 10-year contract with Enterprise Products Partners (Houston). Braskem is investing R380mn (USD106.15mn) in modifications to its Camacari plant and Aratu port terminal in anticipation launching ethane imports by the end of the second quarter of 2017. The ethane will meet up to 15pc of the feedstock needs of the company's cracker in Camacari, Bahia state.
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