Hexion to increase investment in Brazilian resin plant

08 April 2009 22:18  [Source: ICIS news]

SAO PAULO (ICIS news)--Hexion Specialty Chemicals will increase by threefold its investment in a new resin plant in southern Brazil, the company said on Wednesday.

The increase will bring Hexion's total investment in the plant to Brazilian reais (R) 110m ($50m) from R32.5m, according to the company.   

The decision was based on a positive market scenario for the Brazilian state and proximity to buyers, which should reduce freight and transportation costs, company sources said.

The 450,000 tonne/year unit will be built in Montenegro, Rio Grande do Sul, and it will produce phenol and urea formaldehyde resins. Operations are scheduled to begin by the end of 2009.

As a result of the plant, Rio Grande do Sul could become a resin exporter, possibly to Chile and other countries of the Mercosur.  

Hexion currently operates three other units in Brazil, located in Curitiba, Parana; Cotia, Sao Paulo; and Paulinia, Sao Paulo.

($1 = R 2.22)

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By: Hellen Berger
+1 713 525 2653

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