Braskem no longer pursuing proposed petrochem project in West Virginia

26-Jul-19

Brazilian petrochemical producer Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia, and is seeking to sell the land that would have housed it, as reported by SPGlobal Platts. "Due to a number of recent inquiries about its site in Parkersburg, Braskem has engaged a financial advisor to help evaluate strategic alternatives for the site," the company said, declining further comment. The project, announced in 2013, has been on Braskem's back burner for several years.

In May 2018, Mark Nikolich, CEO of Braskem's US arm, Braskem America, said the project remained on hold pending progress on infrastructure, such as pipelines. The company had not found the right risk profile by that time, he said last year. Since then, Braskem has faced multiple other challenges. The company is facing fallout from a government report that linked its salt mining operations in Brazil to geological damages, leading to one cash freeze of R$3.7 bln (US$973 mln) and a lawsuit seeking a second freeze of R$2.5 bln (US$657 mln).