Polypropylene Braskem Takes Over Polypropylene Business from Dow
The acquisition of the Dow Chemical Polypropylene Business, including plants in the USA and Europe, expands Braskem´s global industrial footprint. The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany.
São Paulo/Brazil – Braskem announced the acquisition of the Polypropylene Business from The Dow Chemical Company for 323 million dollar. This transaction represents an important step in Braskem’s growth strategy in the Americas and consolidates its polypropylene leadership in the U.S. In addition to this transaction, the two companies will continue to evaluate potential future collaborations on growth opportunities in connection with their strategy. The transaction is expected to close by the third quarter 2011 pending regulatory approvals.
The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 2.3 billion pounds. The plants in the U.S. are located at Freeport, TX and Seadrift, TX, and will increase Braskem’s polypropylene capacity by 50% in the region to an annual production capacity of 3.1 billion pounds. The two plants located in Germany, at the petrochemical complexes of Wesseling and Schkopau, have annual capacity of 1.2 billion pounds of polypropylene.
"This transaction will enable Braskem to capture approximately US$140 million in synergies (net present value) through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization," said Braskem’s CEO Carlos Fadigas.