Braskem Approves Major Investment to Expand Rio Petrochemical Complex

• Braskem will invest 4.2 billion reals to expand its Rio de Janeiro complex, increasing ethylene and polyethylene production by 220,000 tons annually.
• The project, a key part of its Transformation Program, follows an initial 233 million real engineering phase approved in February.
• Completion is scheduled for 2028 but depends on securing additional financing beyond already approved REIQ resources for 2025-2026.
• The expansion is supported by a forthcoming long-term ethane supply agreement with Petrobras to ensure supply security and competitiveness.
• The investment aims to increase gas in the feedstock matrix, reducing costs and emissions to create a more modern and sustainable industrial park.
• An executive stated the move is crucial for long-term competitiveness and represents a step in Brazil's sustainable reindustrialization.

In an announcement regarding its strategic direction, Braskem revealed that its Board of Directors had approved an estimated investment of 4.2 billion Brazilian reals to expand the capacity of its Rio de Janeiro petrochemical complex. The project aims to increase ethylene production by 220,000 tons per year, with equivalent volumes of polyethylene.

The company noted that an initial phase, involving basic engineering and a budget of 233 million reals, had already received approval in February of this year. This latest decision was described as a significant step within the company's industrial transformation and competitiveness strategy, forming a key part of its broader Transformation Program.

It was stated that the project's completion is scheduled for the end of 2028, though this is contingent upon securing additional financing beyond the resources already approved under the Special Regime for the Chemical Industry (REIQ) for 2025 and 2026. The company clarified that this financial strategy is part of its ongoing analysis concerning its ideal capital structure.

Stefan Lepecki, Braskem's Vice President of South America Business, was quoted explaining that despite a challenging global scenario, the investment was essential to ensure the company's competitiveness and long-term sustainability in the new petrochemical landscape. He expressed that the move demonstrated confidence in Brazil's potential and a commitment to a sustainable reindustrialization of the sector driven by innovation.

To enable the expansion, the Board also approved the procurement of additional ethane volumes through a long-term supply agreement with Petrobras, which was reported to be in its final stages of negotiation. This agreement was highlighted as a measure to ensure supply security and operational competitiveness, thereby strengthening the strategic partnership between the two companies.

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The company stated that the project's objectives include increasing the share of gas in its feedstock matrix, which would lead to reduced costs and lower emissions. The investment was ultimately portrayed as a move to modernize the industrial park, making it more sustainable and competitive. The executive concluded by characterizing the decision as an important step in Braskem's energy transition and in the transformation of the Brazilian chemical industry, emphasizing that it was an investment focused on future efficiency, sustainability, and value generation.