Brazil's Braskem to sell sugarcane ethanol PE to Tetra Pak

25 November 2009 17:49  [Source: ICIS news]

SAO PAULO  (ICIS news)--Brazil’s Braskem signed an agreement to sell 5,000 tonnes/year of sugarcane ethanol-based polyethylene (PE) to Swedish food packaging company Tetra Pak, the chemicals producer said on Wednesday.

Braskem said it would supply Tetra Pak with sugarcane ethanol-based high density PE (HDPE) starting in 2011.

The deal represents over 5% of Tetra Pak’s total demand for HDPE, according to the packaging producer.

Braskem is building the first large-scale "green" polyethylene plant in Triunfo, southern Brazil.

Investments for the plant are projected at around Brazilian reais (R) 500m ($289m), according to Braskem.  

The unit - scheduled to come on stream in the end of 2010 - will use sugarcane to produce ethylene as feedstock for HDPE and linear low density polyethylene (LLDPE).

Braskem said it has also agreed to supply its green PE to Argentine plastic packaging manufacturer Petropack, Johnson & Johnson, Toyota Tsusho, Japanese cosmetics company Shiseido and Brazil’s plastic producer Acinplas.

The company predicted that over 70% of its sugarcane ethanol-based PE production will have been committed to buyers by the end of 2009.

The deal with Tetra Pak and stronger-than-expected demand could encourage Braskem to build a second green PE plant in the state of Sao Paulo, the company added, but did not offer details.

Global demand for PE that is derived from plants stands currently at 600,000 tonnes/year, according to Braskem.

($1 = R 1.73)

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Nadine Spoeri


By: Hellen Berger
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