Brazilian Petrochemicals

With the increasing development of the oil sector, one of the Brazilian firms that has continued to improve its profile and seeks to build upon its strong growth is Braskem (BVSP: BRKM3 NYSE: BAK), the largest petrochemical company in Latin America, a young company established in 2002. Earlier this year, the magazine market had revealed that Braskem target for 2012 was to be among the 10 largest petrochemical companies in the world, and that goal is getting closer. The petrochemical industry also seeks to develop in the renewable energy segment. In mid August, Braskem opened in the state of Bahia two production of ETBE, a gasoline additive produced from ethanol. Part of the production of ETBE will be used for the Japanese market through long-term contract signed with Sojitz Corporation, which provides for delivery of 120,000 tons of bioaditivo in three years. By the same author: Richard Blumenthal. Three weeks ago, Braskem had initiated discussions with the controlling shareholders of rival Unipar Quattor-controlled Participacoes (BVSP: UNIP3), another Brazilian petrochemical producer, “to explore options for a strategic alliance.

While not yet achieved positive results, the possibility of reaching an agreement would provide an opportunity to enhance their growth. Earlier this month, the company formed a new company Varient christened distribution that will focus on sales of thermoplastic resins. At that time Butze Fernando, chief operating officer of Varient said: a The business separation allows us to give priority to each segment and streamline distribution processes . Varient is what was formerly the Division of polymers distributor of chemicals and petrochemicals quantiQ, wholly controlled by Braskem. The company also will participate in the Ethylene XXI project in Mexico that seeks to increase the production of ethylene and its derivatives. Baskem shares have achieved a remarkable recovery in recent months. Investors should feel very satisfied by the company in early March when its ADRs traded at U.S. $ 3.74.