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<\/figure><\/div>\n\n\nThe company will increase the use of domestic ethane from state-controlled Petrobras and reduce the use of naphtha, which is less competitive because of higher costs, chief executive Roberto Ramos said during the company’s 2024 earnings call on Thursday. <\/p>\n\n\n\n
The company authorized R233mn ($40mn) for the new project’s engineering studies and will sign a long-term ethane supply contract with Petrobras. Braskem aims to accelerate this investment, funded by Brazil’s special tax regimen (REIQ) resources until the end of 2026, when the REIQ ends. The REIQ reduces the VAT-like PIS\/COFINS taxes for the chemical and petrochemical industries and establishes benefits for companies that expand their installed capacity and\/or install new plants.<\/p>\n\n\n\n
The expanded Rio de Janeiro plant is expected to start operations between late 2027 and early 2028. It will maintain current operational levels until then. <\/p>\n\n\n\n
Furthermore, Ramos said that its plant in Rio Grande do Sul state could also process natural gas, while the Camacari plant in Bahia can operate with a 10pc gas mix, potentially increasing to 20pc. <\/p>\n\n\n\n
“All Braskem furnaces that crack naphtha can be adjusted to use 20pc ethane and some propane, giving us a competitive edge with minimal investment,” he said.<\/p>\n\n\n\n
Braskem is also considering gas-naphtha blends for its Sao Paulo state operations, but has no immediate plans to increase capacity. Ethane for the Rio de Janeiro plant will be supplied by Petrobras from pre-salt fields, transported via the Rota 3 pipeline, and processed at the Energias Boaventura natural gas-processing unit. A long-term financing contract with Petrobras is being finalized.<\/p>\n\n\n\n
Petrochemical downturn<\/h3>\n\n\n\n
Meanwhile, Braskem anticipates a prolonged downturn in the petrochemical cycle because of increased imports, which has reduced its polymers market share in Brazil from around 60pc to a little over 40pc in the past two years, Ramos said. <\/p>\n\n\n\n
To address this, Braskem announced strategic initiatives, including asset rationalization, higher import tariffs and anti-dumping investigations against polyethylene from the US and Canada, and potentially polypropylene from China. “The anti-dumping investigation against polyethylene produced in the US and Canada is in its early stages,” Ramos said. “We advocate for this action in Braskem’s best interest.”<\/p>\n\n\n\n
Ramos expects a slight improvement in domestic polymer demand this year, and has already seen some improvement in January, but he does not anticipate a significant increase in plant utilization from the current 72pc.<\/p>\n\n\n\n
4Q production and sales<\/h3>\n\n\n\n
Braskem’s domestic resin sales reached 3.34mn metric tonnes (t) in 2024, flat year-over-year.<\/p>\n\n\n\n
Fourth quarter domestic resin sales fell by 7pc from the prior period but increased 3pc from a year earlier.<\/p>\n\n\n\n
Combined 2024 resin sales in the US and Europe decreased by 7pc. Mexico sales rose by 5pc year-on-year.<\/p>\n\n\n\n
The company’s profit margins for resins and chemicals in Brazil and for polyethylene (PE) in Mexico increased last year. Marginsfor polypropylene (PP) in the US and Europe also increased in 2024.<\/p>\n\n\n\n
Braskem’s average plant utilization rate at domestic operations was at 72pc last year, up from 71pc in 2023.<\/p>\n\n\n\n
Braskem’s combined US and Europe PP plant utilization rates hit 74pc, down by seven percentage points year-on-year and down by nine percentage points quarter-on-quarter.<\/p>\n\n\n\n
In Mexico, Braskem Idesa’s plant utilization rate increased to 77pc this quarter, up by three percentage points from the quarter before. The rise was driven by more ethane supply from state-run oil company Pemex and the end of a scheduled maintenance shutdown. The company’s plant utilization rate rose by one percentage points from the previous year, reaching the highest annual utilization rate since 2017 due to the greater availability of ethane.<\/p>\n\n\n\n
Braskem reported a $2.2bn loss in 2024, widening from a loss of $935mn in 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"
Brazilian petrochemical giant Braskem said it will increase its Rio de Janeiro petrochemical plant’s capacity by 220,000 metric tonnes (t)\/yr each of ethylene and polyethylene as part of its “switch to gas” efficiency initiative. The company will increase the use of domestic ethane from state-controlled Petrobras and reduce the use of naphtha, which is less […]<\/p>\n","protected":false},"author":59,"featured_media":159450,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","nova_meta_subtitle":"The company expects a slight improvement in domestic polymer demand this year, and has already seen some improvement","footnotes":""},"categories":[5572],"tags":[7670,15806,12805],"supplier":[1604,786],"class_list":["post-159415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bio-based","tag-biogas","tag-ethylene","tag-polyethylene","supplier-braskem","supplier-petrobras"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/159415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=159415"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/159415\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media\/159450"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=159415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=159415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=159415"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=159415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}