Braskem and Petropack ink deal for sugarcane ethanol-based polyethylene supply

18-Nov-09

Braskem and Argentine flexible plastic packaging producer Petropack have signed an agreement for sugarcane ethanol-based polyethylene (PE) supply. This is the first partnership in a South American country other than Brazil, and follows contracts settled with Japanese and European companies. Braskem has negotiated contracts for 60% of its ethanol-based resin production and estimates by year-end it will be up to 70%. Petropack has been Braskem's client for naphtha-based PE resin and has invested US$15 mln over the last five years in its processes in order to "keep its leading position in the market" and to use the "green" resin in its product ranges. Braskem is investing 500mn reais (US$292 mln) in the construction of a plant to produce 200,000 tpa of the green PE.