October 28, 2025 14:25

The Board of Directors of South American petrochemical group Braskem has approved a €670 million project to expand ethylene and polyethylene production capacity at its Rio de Janeiro site in Brazil.

Specifically, the upgrade will add 220,000 tonnes per year of ethylene and an equivalent volume of polyethylene.

To enable the project, Braskem’s Board has also approved the procurement of additional ethane volumes through a long-term supply agreement with Petrobras, currently in advanced negotiations. According to Braskem, the agreement ensures security of supply and operational competitiveness, further strengthening the strategic partnership between the two companies.

Project completion is expected by the end of 2028, subject to securing additional funding beyond that already approved under the REIQ Investments - Special Regime for the Chemical Industry for 2025 and 2026.

“Despite the current challenging global scenario, we must ensure that Braskem remains competitive in the new global petrochemical landscape, securing its survival and long-term sustainability,” said Stefan Lepecki, Braskem’s Vice President for South America. “The investment in the Rio de Janeiro petrochemical complex demonstrates our confidence in Brazil's potential and Braskem's commitment to contributing to a sustainable reindustrialization of the sector, driven by innovation and value creation.”

Braskem’s petrochemical complex currently includes three units (Q4, PE9 DCX and PP5 DCX) for the production of ethylene, propylene, polypropylene (75,000 t/y), and low- and high-density polyethylene (540,000 t/y).

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