Braskem: Ethylene Production Expansion in Rio

The Brazilian plastics group Braskem plans to significantly expand its capacity for the production of ethylene and polyethylene in the state of Rio de Janeiro.

According to a press release, the company's board of directors recently gave the green light for a corresponding expansion project at the Duque de Caxias site, located northwest of Rio de Janeiro. The plan involves the construction of new facilities with capacities for an additional 220,000 tons of ethylene and also 220,000 tons of polyethylene.

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The total investment associated with the project is estimated at around BRL 4.2 billion (EUR 670 million). The basic engineering phase alone, which was approved by the group's management in February, accounts for BRL 233 million (EUR 37 million) of this amount.

Braskem manager Stefan Lepecki stated: "Despite the current difficult global situation, we must ensure that Braskem remains competitive worldwide under the new conditions for the petrochemical industry and secures its survival and long-term viability. The investment in the petrochemical complex in Rio de Janeiro demonstrates our confidence in Brazil's potential and Braskem's commitment to contributing to a sustainable reindustrialization of the sector, driven by innovation and value creation."

Completion of the new facilities in Duque de Caxias is planned by the end of 2028. A new long-term supply agreement for the feedstock ethane is to be signed with the Brazilian oil and gas company Petrobras. According to the current announcement, the corresponding negotiations are already close to conclusion. This agreement is also intended to further strengthen the strategic partnership between the two groups.

Braskem is considered the largest polyolefin producer in North and South America. Furthermore, the group is also, according to its own statements, the world's leading manufacturer of biopolymers. Based in São Paulo, Braskem employs around 8,000 people at more than 40 production sites in Brazil, the USA, Mexico, and Germany. For the first half of the 2025 financial year, Braskem reported a net profit of BRL 431 million (EUR 69 million) and an EBITDA of BRL 1.749 billion (EUR 279 million) from consolidated revenues totaling BRL 37.317 billion (EUR 5.961 billion).

More information: www.braskem.com

Braskem, São Paulo, Brasil

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