Braskem to Expand Ethylene and Polyethylene Production Capacity

Braskem has announced that its Board of Directors has approved an investment of approximately 4.2 billion Brazilian reais to increase the production capacity of its petrochemical complex in Rio de Janeiro to 220,000 tons of ethylene per year, along with an equivalent amount of polyethylene. The first phase of the basic engineering project, with a budget of 233 million reais, was approved in February this year.

The project is scheduled for completion by the end of 2028, but will require additional financing beyond the resources already approved under the REIQ (Special Regime for the Chemical Industry) for 2025 and 2026. This initiative forms part of the company’s ongoing analysis and discussion regarding its ideal capital structure.

Stefan Lepecki, Braskem’s Vice President for South America, stated:“Although the current global environment is challenging, we must ensure that Braskem remains competitive in the new global petrochemical landscape, guaranteeing its survival and long-term sustainable growth. The investment in the Rio de Janeiro petrochemical complex reflects our confidence in Brazil’s potential and demonstrates Braskem’s commitment to driving the sustainable reindustrialization of the sector through innovation and value creation.”

To ensure smooth implementation of the project, the Board also approved the procurement of additional ethane supply through a long-term agreement with Petrobras, which is currently in its final negotiation stage. This step will ensure supply security and operational competitiveness while strengthening the strategic partnership between the two companies.

The project aims to increase the share of natural gas in Braskem’s feedstock matrix, thereby reducing costs and emissions and making the company’s industrial park more modern, sustainable, and competitive.

Lepecki concluded:“We are taking an important step in Braskem’s energy transition and in the transformation of Brazil’s chemical industry. This is a forward-looking investment centered on efficiency, sustainability, and value creation.”