During the company’s 2024 earnings call Feb. 27, 2025, Brazilian-based Braskem said it plans to increase capacity at its Rio de Janeiro petrochemical plant by 220,000 metric tons per year for both ethylene and polyethylene as part of its "switch to gas" efficiency initiative. The company will invest R233 million (US$40 million) in engineering studies and sign a long-term ethane supply contract with Petrobras, aiming to complete the project by early 2028 using Brazil's special tax regimen benefits.
According to market analysis from Argus Media, CEO Roberto Ramos highlighted that all Braskem furnaces currently using naphtha can be adjusted to use 20% ethane and some propane, providing competitive advantages with minimal investment. The Rio facility will utilize ethane from pre-salt fields via the Rota 3 pipeline, processed at the Energias Boaventura natural gas unit.
Braskem faces continuing challenges from a prolonged petrochemical downturn and increased imports, which have reduced its Brazilian polymers market share from approximately 60% to just over 40% in two years. To counter this, the company is pursuing asset rationalization, higher import tariffs and anti-dumping investigations against polyethylene from the U.S. and Canada and potentially polypropylene from China.
In March 2024, Braskem entered into a partnership with Shell Chemicals for the supply of bioattributed and biocircular propylene feedstocks in the United States, using a certified mass balance approach. According to the company’s 2024 Management Report, the partnership’s aim is to meet the growing demand for more sustainable options in the packaging, films, automotive and consumer goods markets, replacing fossil feedstock and reducing GHG emissions, contributing to the circular economy.
In October 2024, Braskem and Neste signed an agreement for the supply of circular and biocircular feedstock for the production of resins and chemical products. These products, which are part of Braskem's Wenew portfolio, are being marketed mainly in South America.
Despite improved profit margins for resins and chemicals in Brazil and PE in Mexico, Braskem reported a $2.2 billion loss in 2024, significantly worse than the $935 million loss in 2023, according to the Argus report.
