July 27, 2011
Braskem Becomes the Leading Polypropylene Producer in North America
SAO PAULO, July 27, 2011 /PRNewswire/ -- Braskem, the leading resin producer in the Americas, announced the acquisition of the Polypropylene Business from The Dow Chemical Company for US$323 million. This transaction represents an important step in Braskem's growth strategy in the Americas and consolidates its polypropylene leadership in the U.S.
The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 2.3 billion pounds. The plants in the U.S. are located at Freeport, TX and Seadrift, TX, and will increase Braskem's polypropylene capacity by 50% in the region to an annual production capacity of 3.1 billion pounds. The two plants located in Germany, at the petrochemical complexes of Wesseling and Schkopau, have annual capacity of 1.2 billion pounds of polypropylene.
"The acquisition of Dow's assets consolidates our leadership in polypropylene in the U.S., the largest thermoplastic resins market, and it also enhances our current position in Europe, an important market for our biopolymers strategy," said Braskem's CEO Carlos Fadigas. "In addition, as our 2nd acquisition in the U.S., this transaction will enable Braskem to capture approximately US$140 million in synergies (net present value) through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization," he added.
The transaction is expected to close by the third quarter 2011 pending regulatory approvals.
Braskem remains committed to its 2020 strategic vision to become the world leader in sustainable Chemistry, innovating to better serve people.
Braskem is the largest manufacturer of thermoplastic resins in the Americas. With 31 industrial plants in Brazil and the United States, the company produces more than 33 billion pounds of thermoplastic resins and other petrochemical products annually. Headquartered in Philadelphia, Braskem America, a wholly owned subsidiary of Braskem S.A., has three production facilities located in Texas, Pennsylvania and West Virginia, as well as its Technology and Innovation Center in Pittsburgh.
More information can be obtained by contacting Kerry Butler, Tierney, at +1 (215) 790-4371 or by e-mail [email protected].
SOURCE Braskem S.A.