Brazil Braskem gets R555.6m loan for ethanol-to-PE plant

12 May 2009 21:57  [Source: ICIS news]

HOUSTON (ICIS news)--The Brazilian Development Bank (BNDES) said on Tuesday it would lend petrochemicals maker Braskem Brazilian reais (R) 555.6m ($271.0m, €200.5m) to help the company build the country’s first ethanol-based polyethylene (PE) plant.

Braskem began construction of the 200,000 tonne/year plant on 22 April.

BNDES said the total investment in the project is estimated at R800m.

According to Braskem, ethanol-based PE can compete with regular PE, provided that crude oil prices stay above $45/bbl.

The company expects its ethanol-to-PE facility to be operational in 2011.

Sao Paulo-based Braskem is Latin America’s largest petrochemicals producer.

($1 = R2.05, $1 = €0.74)

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By: William Lemos
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