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 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X