Braskem plans advanced petrochem projects in Venezuela
26 Dec '07
3 min read
The companies will be controlled equally by Braskem and Pequiven and production will be destined to the Venezuelan market and for export to Europe, United States and the western coast of South America.
"Shareholder agreements, including the bases for supplying raw materials, define a fundamental landmark in the installation of one of the most competitive petrochemical projects in the world, and an important step in Braskem's strategy to become one of the ten main petrochemical companies in the world," says José Carlos Grubisich, company president.
"These projects represent a decisive step in improving Braskem's competitiveness," says Grubisich.
The shareholder agreement and the agreement to create the companies will soon be appreciated by the Braskem Board of Directors.
The bases signed by the shareholders meet the criteria of global scale, updated technology and access to competitive raw materials, thus permitting to position the companies within the first quartile petrochemical production cost in the world.
Besides that, Braskem and Pequiven have defined a model of corporate governance that is aligned to the best international practices, guaranteeing equal rights to the partners in management and equal representation in the Board of Directors where all the decisions shall be made in consensus with the shareholders.
The contracted financial advisor has already started to contact multi-lateral agencies, export credit agencies, development banks and private banks and he is structuring a loan worth 70% of the total investment by means of project finance and the remaining 30% will come from equal contributions by the partners.
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