14 October 2013 13:50 [Source: ICIS news]
LONDON (ICIS)--Styrolution and Braskem have signed a memorandum of understanding (MoU) for a 100,000 tonne/year styrenics joint venture in Brazil, the companies said on Monday.
“The new company would seek to capitalise on the favourable market dynamics to create a domestic and regional producer offering customers more localised service and greater security of supply,” Styrolution and Braskem said.
The Germany-headquartered styrenics producer would hold 70% of the proposed joint venture and provide it with product know how and its existing market in the region.
Brazil’s Braskem would supply local and regional market knowledge, supply chain infrastructure and a site for the new plant.
Ground may be broken for the facility as early as 2015 and the plant is likely to start up in 2017 if a joint venture agreement is reached and if the venture gains regulatory and anti-trust approval.
“The proposed partnership would be an important step towards strengthening the petrochemical sector in Brazil,” Braskem CEO Carlos Fadigas said. “It would also aid in the development of domestic business opportunities in areas such as ABS, where our country is currently dependent upon imports, attracting new investments to the derived value chains.”
The proposed joint venture fits with Styrolution’s new strategy which sees the company expand its manufacturing footprint in emerging markets, growth of its speciality styrenics business and a focus on select, higher-growth industry, said Styrolution CEO Roberto Gualdoni.
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