Braskem to permanently shutdown Camacari PET plant

Brazil's Braskem plans to deactivate and permanently shutdown its 78,000 tpa PET plant in Camacari by the end of 2008. Shutting down the plant and exiting the business would result in an accounting provision (with no cash impact) of approximately R$125 million. Braskem had announced the shut down of its DMT unit and the temporary suspension of PET production at the Camacari Petrochemical Complex in May 2007. At the time, the company had initiated a study to assess the possibility of resuming PET production based on a new technological approach that would ensure competitive costs for Brazil's polyester chain. Based on that study, Braskem determined producing PET on a competitive basis was not viable. The company will maintain its supply of PET resin until, at least, April 2009, or as long as inventories last, to all its clients through an agreement.