Braskem's Board has approved a massive R$4.2 billion investment to significantly expand its Rio de Janeiro petrochemical complex, adding 220,000 tons per year of ethylene and equivalent polyethylene capacity by late 2028.
Braskem, a global leader in the petrochemical sector, announced today a monumental strategic investment, with its Board of Directors approving an estimated R$4.2 billion outlay to expand the capacity of its petrochemical complex in Rio de Janeiro. This major capital injection is set to boost the facility’s annual output by 220,000 tons of ethylene, accompanied by equivalent volumes of polyethylene, marking a significant step in modernizing and enhancing the competitiveness of the company's industrial footprint in Brazil.
The project is a flagship initiative within Braskem’s broader Transformation Program, strategically focusing on increasing the use of gas in the company's feedstock matrix. This shift is projected to not only reduce operational costs but also lower emissions, positioning the industrial park as more modern, sustainable, and competitive within the global petrochemical landscape. The project's implementation is targeted for completion by the end of 2028.
A crucial component of enabling this significant expansion is the approval by the Board for the procurement of additional volumes of ethane. This essential feedstock will be secured through a new, long-term supply agreement with Petrobras, which is currently in the final stages of negotiation. This measure is designed to guarantee supply security and operational competitiveness, simultaneously strengthening the strategic partnership between the two Brazilian industrial giants.
"Despite the current challenging global scenario, we must ensure that Braskem remains competitive in the new global petrochemical landscape, securing its survival and long-term sustainability," stated Stefan Lepecki, Vice President of South America Business at Braskem. "The investment in the Rio de Janeiro petrochemical complex demonstrates our confidence in Brazil's potential and Braskem's commitment to contributing to a sustainable reindustrialization of the sector, driven by innovation and value creation."
While the full basic engineering phase, with a pre-approved budget of R$233 million, had already been underway since February of this year, the total $4.2 billion investment remains conditional. The company must secure additional financing beyond the resources already approved under the REIQ Investments—the Special Regime for the Chemical Industry—for the fiscal years 2025 and 2026. This condition highlights the company’s current focus on carefully managing its financial position, as the strategy forms part of ongoing analyses and discussions regarding Braskem's ideal capital structure.
