Brazil's Oxiteno Nordeste S.A (a subsidiary of Ultrapar) and Braskem S. signed an MOU (Memorandum of Understanding) for the supply of 265,000 tpa of ethylene for 15 years, with immediate effect. This is in addition to the 68000 tpa as per the previous contractual volume. Oxiento will have access to an additional 13000 tpa of ethylene in 2007 and 2008. The MoU has established a minimum purchase commitment, and the new agreed supply price will be the reference price in the international market.
With the increased ethylene supply, Ultrapar plans to expand its ethylene oxide and specialty chemicals production capacity at the Oxiteno's plant located at Camacari. At an investment estimated at US$90 million, this expansion is expected to generate additional revenues of US$150 million pa (at full capacity), when it commences production in Q1-2009.
This investment in Camacari is part of Oxiteno's US$320 million expansion planned between 2006 and 2009. This investment plan is already being implemented and includes the new fatty alcohol plant, the ethylene oxide production capacity expansion in Maua plant and the specialty chemicals production capacity expansion.
21-Aug-06 
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