APLA ’08: Rhodia eyes Brazil solvents expansion

17 November 2008 22:11  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Rhodia is increasing its global sales force and technical support services for oxygenated solvents ahead of a possible capacity increase in Brazil, an executive at the French specialty chemicals producer said on Sunday. You can hear highlights of the interview here.

Rhodia has identified oxygenated solvents as a growth area, Mario Lindenhayn, vice president with responsibility for polyamide intermediates and solvents in Brazil, said on the sidelines of the 28th Latin American Petrochemical Association (APLA) annual meeting.

Rhodia’s oxygenated solvents production is concentrated in Paulinia, in Brazil’s Sao Paulo state. About 55% of output from the approximately 300,000 tonne/year plant is supplied to the domestic market, and the rest is exported, mainly to Europe, Lindenhayn said.

“We see good opportunities for developing the portfolio of solvents, based on local raw materials such as ethanol,” he remarked.

Production of products based on competitive, renewable sources is one of the growth drivers for the Brazilian business, he added.

Acetone feedstock for the solvents production is supplied by Rhodia’s phenol/acetone plant in Paulinia, which is being expanded. The company expects to complete the project next month, and commence full production in January, Lindenhayn said.

Expanding the global technical support for solvents is part of Rhodia’s strategy for 2009, he said. The aim is to improve the understanding of market needs and support product development, he added.

So far, demand for products from Rhodia’s Brazilian business has remained robust, despite the global financial crisis, Lindenhayn remarked. “October was a good month for volumes, across all products,” he said, and the positive trend has continued into November, driven by the domestic market.

Demand from the Brazilian automotive industry has been boosted by improved credit lines, he noted. “We continue to see the improved credit lines pushing the automotive industry.”

Listen to highlights of the interview here.

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By: Anna Jagger
+44 20 8652 3214

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