Braskem buys Dow’s polypropylene business

LSRUNQI

Braskem buys Dow’s polypropylene business

Friday, July 29, 2011

  i3 e2 ~7 z. t" E& F6 {3 t8 dSao Paulo - Braskem announced the acquisition of the Polypropylene Business from Dow Chemical for $323 million. This transaction represents an important step in Braskem’s growth strategy in the Americas and consolidates its polypropylene leadership in the U.S. The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 2.3 billion pounds. The plants in the U.S. are located at Freeport, TX and Seadrift, TX, and will increase Braskem’s polypropylene capacity by 50% in the region to an annual production capacity of 3.1 billion pounds. The two plants located in Germany, at the petrochemical complexes of Wesseling and Schkopau, have annual capacity of 1.2 billion pounds of polypropylene. “The acquisition of Dow’s assets consolidates our leadership in polypropylene in the U.S., the largest thermoplastic resins market, and it also enhances our current position in Europe, an important market for our biopolymers strategy,” said Braskem’s CEO Carlos Fadigas. “In addition, as our second acquisition in the U.S., this transaction will enable Braskem to capture approximately $140 million in synergies (net present value) through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization,” he added. The transaction is expected to close by the third quarter 2011 pending regulatory approvals.