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10-15-2013

Styrolution and Braskem to Explore ABS Joint Venture in Brazil

Styrolution, the global leader in styrenics, and Braskem, the largest producer of thermoplastic resins in America and a global leader in biopolymers, announced the signing of a memorandum of understanding (MOU) to investigate the formation of a joint venture in Brazil. The proposed 100 kt plant would supply specialty styrenics, acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) copolymers, to customers in Brazil and throughout South America.

In recent years, Brazil has seen significant growth in the household appliance and automotive industries, both of which are key consumers of the specialty styrenics the joint venture would produce. Traditionally, ABS and SAN have been imported into the region by styrenics providers like Styrolution. The new company would seek to capitalize on the favorable market dynamics to create a domestic and regional producer offering customers more localized service and greater security of supply.

Styrolution's contribution to the proposed joint venture would include its expertise in the development and production of styrenics, the industry's broadest styrenics product portfolio, technology licensing and its existing business in the region. As the region's top petrochemical company, Braskem would provide its knowledge of the local and regional markets, supply chain infrastructure and the site for the production facility.

The consummation of the joint venture is subject to regulatory and antitrust approvals. It is planned that Styrolution would be the majority shareholder with 70 percent and Braskem holding 30 percent. Subject to an agreement by both parties to proceed and provided relevant approvals are obtained, groundbreaking for the site could be expected as early as 2015 with production likely starting in 2017.

Company profile

Braskem S.A.

Rua Lemos Monteiro, 120
BR 05501-050 SAO PAULO, SP

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