BRASKEM S.A. the eight-largest thermoplastic resin producer in the world and largest in the Americas, announced that it has completed its acquisition of the Polypropylene (PP) business of Sunoco Chemicals. The transaction, announced on February 1, was approved by the Federal Trade Commission and the Antitrust Division of the Justice Department of the United States of America. Braskem invested US$350 million in this acquisition as part of its strategy to establish an industrial base in the United States, which will serve as an important platform for its future international expansion.
The U.S. operations for Braskem now have the capacity to produce two billion pounds (950,000 tons) of PP per year, which represents 13% of the country's installed PP production capacity. The acquisition of Sunoco Chemicals and the resulting synergies provide customers with a broader portfolio of products and services.
With the acquisition of these assets, Braskem strengthens its international expansion strategy and its position as one of the global leaders in the PP industry, becoming the world's third-largest producer of PP with annual production capacity of 6.5 billion pounds (2,915,000 tons) per year. “We will take advantage of the experience of the current Sunoco Chemicals key executives, who have excellent knowledge of U.S. market. And the team will be reinforced by the arrival of new leaders who will bring expertise and practical experience of Braskem's successful strategy and business culture,” said Bernardo Gradin, Braskem's CEO.
With the headquarter of U.S. operations in Philadelphia, Braskem has three industrial units located in La Porte, TX; Marcus Hook, PA; and Neal, WV, as well as its Technology and Innovation Center in Pittsburgh. For the employees in the United States, the acquisition by a ompany with PP as partof its core business will bring new opportunities for growth and expanded customer relationships.
In addition to PP, Braskem's core business also includes Polyethylene (PE) and PVC. With annual gross revenue of nearly US$12 billion, the Company is integrated in the first and secondgeneration of the petrochemical chain. In 2009, Braskem exported over US$ 2 billion worth of products to more than 50 countries, which included resins and basic petrochemicals.