Braskem, the leading resin producer in the Americas has announced completion of acquisition of the Polypropylene Business from The Dow Chemical Company. The transaction, announced on July 27, was approved by the European Commission and the Federal Trade Commission and the Antitrust Division of the Justice Department of the United States of America. The assets involved in the deal include two manufacturing plants in the US and two in Germany, with a total annual polypropylene production capacity of 1.05 miln tons. The two US manufacturing plants located in Freeport, Texas and Seadrift, Texas will be fully integrated into Braskem America, Inc. The two German plants located in Wesseling and Schkopau will operate under Braskem Europe GmbH. The deal will deliver approximately US$140 mln in synergies through a more diversified portfolio, leveraged fixed cost base and working capital, logistics and supply optimization. This acquisition brings a strong team that, combined with a worldwide polypropylene production capacity of 4 mln tpa, positions Braskem to provide a broader portfolio of products and services to its customers.
"Braskem has a long term commitment to the polymers industry. We see enormous potential for growth and innovation in thermoplastics resins because of the endless uses in people's everyday lives," said Braskem's Executive Vice President of the International Business Unit, Luiz de Mendonca. "We are very excited to grow our partnership with our clients in North America and Europe."