30 June 2011 19:20 [Source: ICIS news]
“Braskem maintains regular long-term contracts with some 10 ethanol suppliers in order to guarantee supplies of the product, and we have deals established to reduce price volatility as time goes by,” said Braskem spokesman Nelson Letaif in Portuguese.
However, according to Letaif, details of those measures may not be revealed because of confidentiality agreements.
Braskem’s ethanol-derived PP plant is expected to begin operating in the second half of 2013 and will cost $100m (€69m), according to the company.
The unit would have an initial production capacity of 30,000 tonnes/year of PP. However, Braskem said it could increase the capacity of the plant to 50,000 tonnes/year.
The exact location of the facility has not been decided, the company added.
According to Braskem, the new unit would increase the company’s demand for ethanol to 800m litres/year.
In 2011, Braskem expects to use 700m litres/year of ethanol - 3% of the country's total production projected for 2011 - which puts Braskem as Brazil's top ethanol buyer for industrial use, according to industry data.
Meanwhile, domestic ethanol production continued to drop by nearly 30% year on year since the start of the sugarcane harvest in April, according industry association Unica.
($1 = €0.69)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|