Brazil's Braskem closes on $340m deal for Dow PP business

30 September 2011 23:51  [Source: ICIS news]

Braskem closes on Dow PP dealHOUSTON (ICIS)--Braskem completed the $340m (€252m) acquisition of US-based Dow Chemical's polypropylene (PP) business, the Brazil-based company said on Friday.

Included in the deal are two PP plants in the US and two in Germany, with a total capacity of more than 1m tonnes/year, Braskem said. Excluded is Dow's PP licensing and catalyst business.

The plants in the US are in Texas at Freeport and Seadrift, and will increase Braskem's US PP capacity by 50% to 1.4m tonnes/year.

The two plants in Germany, at the petrochemical complexes of Wesseling and Schkopau, have a capacity of 544,000 tonnes/year.

Braskem said the acquisition further strengthens its strategy of expanding internationally and consolidating its position in the US. The company is now the nation's largest PP producer.

Before the Dow deal, Braskem had acquired three US sites through its $350m acquisition of Sunoco's PP business in 2010.

($1 = €0.74)

For more on PP visit ICIS chemical intelligence
For more on Dow visit ICIS company intelligence

By: Al Greenwood
+1 713 525 2645

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