Investments of Braskem and Basf get to US$ 1.25 billion
DCI
The chemical industry is in full expansion in Brazil with investment in the increased of the productive capacity. Giants of the sector such as the Brazilian Braskem and the German Basf have robust plans to increase the local production of many inputs. The first foresees investments that get to R$ 1.6 billion (US$ 1 billion) and the second has announced a plan to invest 300 million Euros (nearly US$ 400 million) in South America, with Brazil as the focus of their resources.
Braskem, which yesterday announced the results of the first quarter, kept the investment plan for 2011. The company, whose main partners are Odebrecht, with 50.1% of the voting capital, and Petrobras, with 47% of interest and voting rights, foresees the investments may get to R$ 1.64 billion (US$ 1.03 billion). Such volume, however, may increase, since there is the perspective of the approval of new plant for polypropylene produced from ethanol (Green PP) by the Board of Directors of the company later this year.
According to the President of the company, Carlos Fadigas, the plant is not included in the plan because it still needs to be approved by of the controllers, but he declared that to comply with the schedule of putting the unit in operation in 2013 the works have to start in 2012. Another project of expansion in Brazil is that of the Butadiene plant, raw material used in the production of rubber, which will have a new capacity of 100 tons. That volume increases in 30% the production of the company to 446 tons a year as of 2013.
For this business, Braskem has announced it has closed two contracts of pre-sale at the total value of R$ 200 million (US$ 125 million). With that, says Fadigas, the company obtained nearly all the resources required for the construction, which will begin this year and should cost nearly R$ 300 million (US$ 187.5 million).
On its turn, the multinational Basf announced it will enhance its operations in South America with the injection of 300 million Euros in new projects focused on Brazil. Among them is the conclusion of the new sodium methylate plant in Guaratinguetá (SP), its largest productive unit in South America. The plant will have an annual productive capacity of 60 tons and the main goal is to supply the regional market. That is the second plant of the multinational for the product; the other is located in Ludwigshafen, in base country, Germany. The company has not detailed the value of the investment in the plant of São Paulo, it only said it will involve a capex of two digits in millions of Euros and it will go into operation in early 2012".
Another announcement made by the company in March this year includes a feasibility study to assess the technical, commercial and economical possibilities to operate a complex of global scale in Brazil, which includes the production of acrylic acid, butyl acrylate and superabsorbent polymers (SAP). The decisions regarding the plants to be built and their capacity will be taken after the feasibility study, whose conclusion is scheduled for 2011. "By means of the investments planned, Basf is focusing on a market at clear growth", it said in the note.