Styrolution and Braskem have signed a memorandum of
understanding to investigate the formation of a joint venture
in Brazil, the companies announced on Monday.
The proposed 100,000 tpy plant would supply specialty
styrenics, acrylonitrile butadiene styrene (ABS) and styrene
acrylonitrile (SAN) copolymers, to customers in Brazil and
throughout South America.
With a population of over 200 million and an estimated gross
domestic product of over $2.3 trillion, the Brazilian market is
robust. In recent years, Brazil has seen significant growth in
the household appliance and automotive industries, both of
which are key consumers of the specialty styrenics the joint
venture would produce, according to the companies.
Traditionally, ABS and SAN have been imported into the region
by styrenics providers like Styrolution. Officials say the new
company would seek to capitalize on the favorable market
dynamics to create a domestic and regional producer, thereby
offering customers more localized service and greater security
Styrolution says its contribution to the proposed joint
venture would include its expertise in the development and
production of styrenics, the industrys broadest styrenics
product portfolio, technology licensing and its
existing business in the region.
Meanwhile, as the regions top petrochemical company, Braskem would
provide its knowledge of the local and regional markets, supply
chain infrastructure and the site for the production
The consummation of the joint venture is subject to
regulatory and antitrust approvals. It is planned that
Styrolution would be the majority shareholder with 70% and
Braskem holding 30%. Subject to an agreement by both parties to
proceed and provided relevant approvals are obtained,
groundbreaking for the site could be expected as early as 2015
with production likely starting in 2017.
Styrolution recently unveiled a new strategy which
calls for a shift in three areas of our business, namely
expanding our footprint in emerging markets, growing our
specialty styrenics business and focusing on select,
higher-growth industries, says Roberto Gualdoni, CEO
For Styrolution, this proposed joint venture ticks all
the boxes, and we are pleased to be partnering with Braskem to
explore the opportunities this could afford us," he