01 February 2010 18:45 [Source: ICIS news]
(adds updates thoughout)
HOUSTON (ICIS news)--Brazilian petrochemicals maker Braskem on Monday touted its acquisition of Sunoco Chemicals, saying the company’s feedstock advantages make it one of the most competitive polypropylene (PP) producers in the US.
Braskem said Sunoco has a leg up on most of its PP rivals because two of its plants are located outside the US Gulf region, which allows them to buy refinery-sourced propylene at a discount.
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The feedstock advantage stems from reduced logistics costs, said Braskem’s vice president and chief financial officer Carlos Fadigas, adding that 60% of US refineries are located outside the US Gulf area.
Sunoco has 70% of its feedstocks on contract and relies on the spot market for the remaining 30%, the executive said.
According to Braskem, PP is among the fastest growing thermoplastic resin markets in the world.
The company quoted industry projections calling for PP demand in the
Braskem said Sunoco is the fourth-largest PP producer in the
($1 = €0.72)
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