Brazil stimulus measures starting to help chem makers, exec says

24 May 2013 03:38  [Source: ICIS news]

SAO PAULO (ICIS)--The recently announced stimulus measures for Brazil’s chemical makers will allow companies to operate at higher capacity and have an immediate effect on making the country’s producers more competitive, an executive with Braskem said on Thursday.

Some 40-50 companies will benefit, from upstream producers such as the global chemical producer on down to smaller chemical makers, said Luciano Guidolin, executive vice president for polyolefins for Braskem. He made his comments on the sidelines of the 2013 Feiplastic convention.

The Brazilian government recently announced measures such as lower taxes to help reinvigorate its chemical production sector.

The measures went into effect last week, Guidolin said, and those producers who have sold chemicals since the changes were implemented have been able to reap the benefits.

In the short term, the stimulus will help increase capacity utilization, while in the medium term it should help increase investment by the chemical makers, he said.

“The Brazilian government is taking steps to make chemical companies more competitive,” Guidolin said. “We always can grow faster, but we are taking steps in the right direction.”

Feiplastic continues through Friday.

By: Jeremy Pafford
+1 713 525 2653

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