Braskem ties up with Basell to stimulate growth of PP in Brazil

Braskem, leader in the thermoplastics in Latin America and one of the largest Brazilian privately-owned industrial companies has recorded a growth in Q2 2005 Net Income to R$ 428 Million. Investments in production capacity expansion implemented since 2004 along with high asset utilization rates have led to a rise in production. Polypropylene production recorded a 28% in H1 2005 vis a vis the same period last year. Total sales volume of thermoplastic resins (PE, PP and PVC) grew by 7% in H1 2005. Net export revenue touched US$ 509 million, a 44% increase over H1 2004. Two projects are already on stream the São Paulo state of Brazil to increase the production of polypropylene. * Basell has signed a licensed agreement with Polibrasil to almost double its polypropylene capacity in 3-4 years at its existing plant, with the Spheripol process. This plant in Mauá, São Paulo, is to increase production in two phases. The first phase, scheduled for completion in early 2007 is to increase the plant's annual capacity from 240,000 tons to 360,000 tons, while the second phase that is to be complete by 2008, will increase the production capacity to 450,000 tpa. * Expansion in São Paulo with Petroquisa with a 350,000 ton polypropylene plant. * An MOU with Pequiven for the construction of a 400,000 ton polyethylene (PE) plant in Venezuela. The growing markets for petrochemicals in Brazil as well as South America have led to the development of new projects in this sector and expansion of existing capacities.