Braskem to build polypropylene production facility in Texas


Petrochemical company Braskem is set to move forward with the construction of a new polypropylene factory next to its existing production facilities in La Porte, Texas.

The design and construction of the facility, known as Delta, will entail an investment of $675m. The plant will have a production capacity of 450 kilotons (kt), or the equivalent of about 1 billion pounds, per year.

The facility will be constructed on a 200-acre site at Braskem's current La Porte facility, which is located 26 miles from Houston.

The new line will provide additional production capacity of homopolymers, random copolymers, impact copolymers, and reactor TPOs, building upon Braskem's current polypropylene production plant in La Porte which has a production capacity of 354kt annually.

Currently, engineering design phase is in progress. Construction of on the facility is likely to start mid-summer, with the final phase of main construction targeted for the first quarter of 2020.

The project is expected to create approximately 1,000 development and construction jobs. Upon completion, the new facility will add 50 permanent jobs.

Braskem CEO Fernando Musa said: "Our approval to proceed with the capital investment in Delta is the latest major milestone in Braskem's global growth strategy.

"This new world-class petrochemical facility will bring important new North American production capacity to help us meet the growing demand from our clients, reaffirming our position as the leading producer of polypropylene in the Americas and the third largest in the world.

“By increasing our production capacity in close proximity to customer demand, attractive feedstock as well as established export channels, we believe Delta will serve our clients well and offer an attractive return on our investment for our shareholders. This investment is a true vote of confidence in the future of Braskem and a testament to our commitment to meeting our clients' needs.”

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