Braskem, the leader in the thermoplastic resins segment in Latin America and the third-largest petrochemical producer in the Americas, has announced that the capacity utilization rates at its Basic Petrochemicals Unit plants were temporarily reduced to normalize the high inventory levels, in view of the temporary reduction in international demand and the destocking trend in the petrochemical and plastics production chain in Brazil. The decision further underscores Braskem's commitment to fiscal discipline and to the competitiveness of the petrochemical industry.
Only one of the two production lines at the Camaçari Petrochemical Complex in the state of Bahia and one of the two production lines at the Triunfo Petrochemical Complex in the state of Rio Grande do Sul are still in operation. As a result, the production of ethylene, the raw material for products such as polyethylene and PVC, was reduced to 55% of its production capacity of 2.5 mln tpa.
This adjustment should remain in effect through year-end, when the situation of credit liquidity and demand will be reassessed. The reduction in the level of activity at the Basic Petrochemical Unit impacts, in the same proportion, the capacity utilization rates at the Polyolefins Unit, which is responsible for polyethylene and polypropylene businesses. At the Vinyls Unit, the production of PVC remains at normal levels.
Braskem believes this situation is temporary and expects to resume as soon as possible normal operating levels at its production units, always aligned with its commitment to serve clients.