Brazil resins industry lauds petrochemical bill

28 September 2007 23:41  [Source: ICIS news]

HOUSTON (ICIS news)--Brazil’s thermoplastic resins industry on Friday praised a bill making its way through the legislature that would open the door for new state funding for the sector.

The bill, for the first time in Brazil, would legally define production of olefins and thermoplastic resins, and designate these industries as beneficiaries of programmes financed by state royalties from hydrocarbons.

Currently, petrochemicals are treated as petroleum derivatives as a generic classification under Brazilian legal code, but fall into a grey area for purposes of state financing and technological incentives.

Bill 7290 would also allow state funding for scientific research and programmes that would seek to prevent or reduce environmental liabilities for the industry.

“This measure will give great impetus to increase investments in research and development in the petrochemical and plastic industries,” said Jose Ricardo Roriz Coelho, president of the Plastic Resins Industry Union (Siresp), in a Portuguese language statement on Friday.

The Mines and Energy Committee of the Chamber of Deputies, Brazil’s lower house, approved the bill on Wednesday. It must be approved at each committee with jurisdiction before passing the house. If it passes the committee level, it is virtually assured full house approval and will await only executive ratification to become law.

According to Siresp, the bill would increase Brazil’s ability to compete in the global marketplace by stimulating investments in technology and permit local industry to produce petrochemical products with higher aggregate value.

By: John Waggoner
+1 713 525 2653

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