Project in Duque de Caxias will increase ethylene production by 220,000 tons per year and equivalent volumes of polyethylene.

February 27, 2025 – Braskem, a global petrochemical company, has announced it will start a project, in partnership with Petrobras, to increase the production capacity of its petrochemical plant in Rio de Janeiro by 220,000 tons of ethylene per year, in addition to the equivalent volumes of polyethylene. The project will involve an investment of approximately R$233 million (aproximately USD 40 million) to hire conceptual and basic engineering studies.

Braskem is expected to sign a long term contract with Petrobras for the supply of ethane, as a result of the growing availability of natural gas in Brazil, and will seek resources within the Government´s Special Regime for the Chemical Industry ("REIQ Investimentos"), which provides for a presumed credit of 1.5% of PIS/COFINS tax for the execution of investments in the expansion of installed capacities in the Brazilian chemical industry.

The project is part of the company's strategy to increase the use of gas in its raw material matrix. "We are seeking to boost the competitiveness of the Brazilian chemical industry and this project will be fundamental", says Roberto Ramos, CEO of Braskem. Petrobras has a similar strategy, as it also emphasizes the importance of expanding the use of natural gas in the country's industries.

"Petrobras is very pleased to support this project that will increase Braskem's capacity in Duque de Caxias, providing natural gas from the pre-salt layer of the Boaventura Energy Complex," says William França, the company's Executive Director of Industrial Processes and Products. "This action is in line with the government's directive to increase the supply of natural gas in the Brazilian industrial matrix," he concludes.

Braskem has a portfolio of plastic resins and chemical products for various segments, such as food packaging, construction, industrial, automotive, agribusiness, health and hygiene, among others. With 8,500 employees and 40 industrial units in Brazil, the USA, Mexico and Germany, the company exports its products to customers in more than 71 countries.

Source: Braskem