Braskem, a prominent global producer of chemicals and plastics—including polyethylene (PE), polypropylene (PP), ethylene vinyl acetate (EVA), and key base chemicals like benzene, cumene, ortho-xylene, and para-xylene—has announced its decision to withdraw from Upsyde, its mechanical recycling joint venture with Terra Circular. Upsyde specialized in transforming post-consumer plastic waste into high-value products such as road plates and pallets, supporting circular economy initiatives through mechanical recycling processes.
The company’s decision to divest from the joint venture comes as the petrochemical industry continues to face a prolonged downturn. Several structural challenges—including high energy costs, inflationary pressures, and weakened industrial activity, particularly in the European market—have created a difficult operating environment. These headwinds have prompted Braskem to reassess its strategic priorities and realign its focus on core operations, specifically the production of chemicals and conventional plastics.
“Given the complexity of the current market dynamics and the need to ensure the long-term competitiveness of our business, we have made the strategic decision to redirect our resources toward our main activities,” Braskem said in a statement. “This step will enable us to strengthen our operational efficiency and optimize capital allocation in areas where we have the most impact and expertise.”
Despite stepping back from the Upsyde joint venture, Braskem emphasized that sustainability continues to be a central pillar of its corporate strategy. The company pointed to several ongoing initiatives that reflect its commitment to advancing circular solutions and lowering its environmental footprint. Among these efforts is a significant investment to expand its biopolymer production capacity in Brazil. Braskem is also moving forward with the development of a new biopolymer plant project in Thailand, which will further support its long-term goals in the renewable materials sector.
Braskem also remains actively involved in both mechanical and chemical recycling, where it partners with specialized companies across the value chain. In many of these partnerships, Braskem serves as an off-taker, purchasing recycled raw materials to be incorporated into its product portfolio. This approach enables the company to support recycling ecosystems while maintaining flexibility and focus in its operations.
“We continue to believe in the importance of circular economy principles and sustainable innovation,” the company added. “Our business strategy remains aligned with global climate goals and the transition to more sustainable material solutions.”
As Braskem transitions away from the Upsyde venture, it underscores a broader industry trend in which chemical companies are sharpening their focus amid volatile market conditions, while still pursuing scalable and impactful sustainability initiatives.
