Braskem buys Dow's polyproplyene business
By Canadian Packaging StaffConverting acquisition Braskem Dow Chemical Company Polypropylene
The acquisition of the Dow Chemical Polypropylene Business, including plants in the USA and Europe, expands Braskem´s global industrial footprint.
Braskem, a Sao Paulo, Brazil-headquartered leading resin producer in the Americas, has announced the acquisition of the polypropylene business from The Dow Chemical Company for US$323 million.
The 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 and Seadrift, TX, and will increase Braskem’s polypropylene capacity by 50 per cent in the region to an annual production capacity of 3.1 billion pounds. The two plants at the petrochemical complexes of Wesseling and Schkopau in Germany have an 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,” says Braskem’s chief executive officer Carlos Fadigas. “In addition, as our second acquisition in the U.S., this transaction will enable Braskem to capture approximately US$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.”
The transaction is expected to close by the third quarter 2011 pending regulatory approvals.
Braskem’ s 2020 strategic vision to become the world leader in sustainable chemistry.
For more information on Braskem, visit www.braskem.com.