Home / Knowledge / News / Textiles / Braskem announces deactivation of caprolactam plant
Braskem announces deactivation of caprolactam plant
16
May '09
Braskem informs it has decided to suspend the production of caprolactam, a raw material used to manufacture nylon 6, and temporarily deactivate the product's industrial unit located at the Camaçari Complex in Bahia. The decision took into account a detailed assessment of the business, considering the difficulties the Brazilian market for caprolactam has been undergoing in recent years, as well as the impact of the international crisis.

Most caprolactam produced by Braskem was destined for the international market, which has lost liquidity since mid-2008 as a result of the global economic crisis and the credit shortage. The company thus had to drastically reduce the use of plant capacity, which reduced profit margins and momentarily made it unfeasible to continue with the operation. Since these assets can be reactivated in the future, this deactivation will not entail any accounting impact.

Braskem will continue supplying its domestic market caprolactam clients until the end of 2009, with current stocks. After that date, they can resort directly to international suppliers, an alternative currently being used by some Brazilian companies.

Besides honoring all its commitments with clients, Braskem also adopted all measures to minimize domestic impacts from this decision. Of the 106 employees involved in this business, 38 were reabsorbed by other units, 34 are in the process of retirement, 19 remain employed at the cyclohexane unit and 18 may be dismissed. Braskem is still analyzing opportunities to use these employees at other of its own or partner units.

Braskem will accompany the evolution of caprolactam market conditions to determine the eventual resumption of operations at its industrial unit.

Braskem

Must ReadView All

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Apparel/Garments | On 19th Jan 2017

Apparel brand Mango adapts website for Middle East region

Spanish apparel brand Mango has unveiled an adapted version of its...

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search