OREANDA-NEWS. October 3, 2012. Braskem inaugurated on September 13, its new butadiene plant in Brazil, at the Triunfo Petrochemical Complex in the state of Rio Grande do Sul. The state's Governor Tarso Genro attended the ceremony. The unit, which required investment of BRL 300 million, confirms Braskem's commitment to developing the chemical industry and production chain in Rio Grande do Sul and in Brazil. Butadiene is a raw material for the synthetic rubber industry, where it is used to make tires and general rubber items.

This is the second major investment inaugurated by Braskem in Brazil in 2012. "The company is focused on important projects that will consolidate its position as a leading petrochemical company worldwide and strengthen Brazil's industrial sector," said Carlos Fadigas, CEO of Braskem. Over the last four years, the challenges posed by the global economic scenario did not prevent the company from commissioning four new industrial units in Brazil: a polypropylene plant in Paulinia, Sao Paulo in 2008; a green ethylene and polyethylene plant in Triunfo, Rio Grande do Sul in 2010; a PVC plant in the state of Alagoas last August; and the new butadiene plant also in Triunfo.

With production capacity of 103 kton/year and creating 60 new direct jobs, the butadiene plant will double the volume of this product processed at the Triunfo Complex and contribute to expanding the synthetic rubber chain in the state. The unit is already operating at full production capacity, which increases the complex's maximum butadiene supply to around 210 kton/year. Braskem also produces 180 kton/year of butadiene in Camacari, Bahia and 80 kton/year in Capuava, Sao Paulo.

The unit was commissioned 50 days ahead of schedule. This acceleration in the plant's start-up was made possible by a project management model that minimizes risks and optimizes the deadlines set for the engineering, supply and construction phases. Lasting 14 months, the construction works involved installing 930 tons of tubing, 570 tons of metallic structures and more than 200,000 meters of cable.

Led by Construtora Norberto Odebrecht (Odebrecht's Engineering and Construction Company), the construction project created 1,800 direct jobs during the period. The labor contracted came primarily from the surrounding communities. Some of the workers participated in the training program called Acreditar that was offered under a partnership with the Municipal Government of Montenegro and the National Industrial Training Service (SENAI).

The investment is aligned with Braskem's strategy to simultaneously pursue the competitiveness offered by using a gas-based feedstock in its new complexes and working to maximize its position in the market of products derived from petrochemical naphtha, which has become scarcer in international markets.

In addition to representing an opportunity to meet world demand, the decision to invest in expanding butadiene production was based on the potential of the synthetic rubber production chain in Brazil. One example is Brazil's automotive industry, which has been growing at around 8% per year, which has led tire manufacturers to invest in new units in the country. "In addition to the potential growth of companies already installed in Brazil, we are in contact with players in the global synthetic rubber industry that are interested in having production facilities in the country.

This means that butadiene, which before was exported, could gradually be processed in the country," said Rui Chammas, vice-president of Braskem's Basic Petrochemicals Unit.

The investment also strengthens Braskem's commitment to the development of the state of Rio Grande do Sul. "Over the last four years, the company has invested over BRL 2 billion in new plants, capacity expansion projects, maintenance turnarounds and health, environment, and safety," noted Fadigas.