What is Braskem’s global footprint?

Braskem is the largest petrochemical company in the Americas, the largest producer of polypropylene (PP) in the US, and a global leader in biopolymers production. We have a global presence with 40 industrial units, of which 28 are in Brazil, six in the US, two in Germany and four in Mexico. The company sells products in over 70 countries. One of Braskem’s main developments is our new PP production plant in the US, which started its operation in Q3 2020. The US$675 million Delta project is located in La Porte, Texas, and it is the company’s largest PP unit as well as the most energy efficient PP production plant in North America, with a production capacity of 450,000 tonnes per year (mt/y).

Can you elaborate on Braskem’s capacity in Brazil and how is this market behaving?

Approximately one third of Braskem’s capacity in Brazil goes to the export market, mainly South America. In 2019, our Brazilian market experienced a small growth rate of approximately 2%. We believed that the Brazilian economy would have a better performance in 2020, but the coronavirus scenario changed this perception. Even if Braskem is part of an essential industry for this market situation, we felt the global economic slowdown in our results. During this year, we focused on people safety and on meeting the needs of our clients. We kept our industrial units operating, with all the security protocols, and continue to prepare for a recovery in our markets. The context affected resins and chemical sales in Brazil, mainly in April, and this returned to near-normal levels in the middle of the year. We are confident we will have positive growth by the end of 2020 due to the start of the new PP facility and the expansion of our commercial footprint in Asia and Europe.

How can pre-salt developments facilitate access to competitive feedstock?

The region, mainly with Brazil and Argentina, has huge potential for growth in the petrochemical industry as there will be plenty of feedstock available. This will require policy changes, midstream investments and infrastructural improvements in the region. At Braskem, we have been talking to potential partners that could make the availability of additional feedstock a reality.

How important will renewable source chemicals be for Braskem moving forward?

Ten years ago in 2010, we launched the I’m green brand and bio-based polyethylene and, way before the circular economy started to become a hot topic in the sector, we were already focusing on recycling, waste reduction and investing in bio-based resins. Today, Braskem has an annual capacity of 200,000 mt/y of bio-based polyethylene and is the global leader in biopolymers production. We are seeing a much greater demand for our bio-based products, coming especially from Europe and Asia, and that is why we are studying opportunities to expand the capacity of our green ethylene unit in Rio Grande do Sul, Brazil.

Can you comment on some initiatives undertaken during Covid-19?

Since the beginning of the pandemic, in March, we had more than 80 global projects with clients and other partners amounting to R$10 million in donations. A lot of that was dedicated to the transformation of plastic resins and chemicals into essential goods, such as surgical masks, packaging for liquid and gel alcohol, bleach and 3D printing of bands for protective face shields. Another highlight was the donation of LPG to field hospitals and hygiene kits and food staples to local communities where we operate. Finally, we kept our team members as safe as possible, through flexible office schedules, a 40% reduction in the number of employees on site, and a platform for physical and emotional support to all team members and their families.

APLA celebrates 40 years in 2020. How has the mandate of the association evolved?

Today, we have approximately 120 associated members, creating a great platform to boost governance and promote business in the sector. At the APLA event, approximately 300 companies are represented from 35 countries, and people use this opportunity to network and develop business. We are trying to share the future of the industry and its trends and increase the awareness of sustainability to foster sustainable practices and responsible care in the industry.