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Braskem and Basf announce agreement to set up acrylic complex in Brazil

Braskem and Basf announce agreement to set up acrylic complex in Brazil
Braskem will supply propylene and other inputs to the project in Bahia, which will receive investments of over US$750 million.

Braskem, the largest producer of thermoplastic resins in the Americas and the world leader in the production of biopolymers, signed an agreement with Basf, the world's leading chemicals company and present in Brazil for more than 100 years, to supply propylene and soda for the global-scale project to produce acrylic acid, butyl acrylate and superabsorbent polymers (SAP) in Brazil. Basf will invest more than US$ 750 million in the construction of plants at the Camaçari Complex in Bahia, which will be the first to produce acrylic acid and superabsorbent polymers (SAP) in Brazil and South America. Braskem will invest around US$30 million.

The propylene to be supplied by Braskem, amounting to about US$ 200 million per year, will be the main raw material for the production of acrylic acid, used in the paints, industrial textiles and mining sectors, among others, of butyl acrylate, a raw material for the industrial textile and construction sectors, and of superabsorbent polymers, which are used to produce diapers, as well as in water treatment and oil extraction, among other applications.

The volume of propylene envisaged in the agre ement is currently exported by Braskem. With this agreement, the product will be consumed in the domestic market with the addition of value, generating positive effects for Brazil's trade balance by substituting acrylic acid, acrylate and superabsorbent imports. The project will also bring to the table Basf's proprietary high technology, which will boost the competitive advantage of Brazil's diaper, paint and textile production, as well as the construction sectors, among others.


"The agreement with Basf will bring enormous benefits to the entire acrylic acid production chain, thanks to the project's production capacity and the scale of investment. It will also stimulate a new cycle of investments in the Camaçari Complex, attracting new manufacturing companies to Bahia", says Carlos Fadigas, CEO of Braskem.

"With this investment in Brazil, we are consolidating our domestic and global leadership in the acrylic value chain, while guaranteeing the supply of our products to consumers in the region and contributing to the nation's development", said Alfred Hackenberger, CEO of Basf South America.

The plant's location was decided based on the competitive edge offered by Bahia, besides the availability of raw materials - propylene and soda - and of general utilities, which will be supplied by Braskem.


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Braskem

Braskem is a producer of thermoplastic resins, operating 29 industrial plants in Brazil and the United States

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BASF

the world’s leading chemical company; the portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.