Braskem to surpass the US$1 bln mark in exports in 2006

29-Nov-06

Brazilian petrochemicals group Braskem will surpass the US$1bn mark in this year's exports. The company is targeting a 25% net profit in sales abroad as against the average net profit margin in exports of about 22% a year. Braskem's domestic thermoplastic resins market will see an 8-10% increase in profits from last year. Braskem invested 590 mln reais (US$219mn) in the first nine months of the year, and plans to invest 900 mln reais in 2006. Braskem is progressing well to meet all expansion in capacity that currently stands at six million tpa. The only project of Braskem that is not progressing well is the US$1 bln petrochemicals complex project on the Brazil-Bolivia border region, which is on hold because of political and strategic issues between Bolivia's government and Brazil's federal energy company Petrobras. The US$280 mln Paulínia polypropylene joint venture between Braskem and Petrobras is on schedule and due to start operations at the end of 2007 or the beginning of 2008. Braskem also will start more detailed feasibility studies for the polypropylene plant project with Venezuela. Venezuela's state petrochemicals firm Pequiven is working with Braskem to produce polyethylene, polypropylene and other petrochemicals.