Braskem to Expand Ethylene, Polyethylene Production at Brazil Facility

Mega Investment Braskem to Expand Ethylene, Polyethylene Production at Brazil Facility

2025-10-28 Source: Press release Braskem 2 min Reading Time

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Braskem has plans to expand ethylene and polyethylene production at its Rio de Janeiro facility in Brazil. A mega investment of R$ 4.2 billion has already been approved for the expansion.

São Paulo/Brazil – Braskem has recently announced that its Board of Directors has approved an estimated investment of R$ 4.2 billion to increase the capacity of its petrochemical complex in Rio de Janeiro by 220,000 tons of ethylene per year, along with equivalent volumes of polyethylene. The initial phase of basic engineering, with a budget of R$ 233 million, had already been approved in February of this year.

The project marks another step in the company's strategy for industrial transformation and competitiveness and is part of its Transformation Program. Scheduled for completion by the end of 2028, the project is subject to securing additional financing beyond the resources already approved under the Reiq Investments - Special Regime for the Chemical Industry - for the years 2025 and 2026. This strategy is part of ongoing analyses and discussions regarding the ideal capital structure for the company.

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"Despite the current challenging global scenario, we must ensure that Braskem remains competitive in the new global petrochemical landscape, securing its survival and long-term sustainability. The investment in the Rio de Janeiro petrochemical complex demonstrates our confidence in Brazil's potential and Braskem's commitment to contributing to a sustainable reindustrialization of the sector, driven by innovation and value creation," says Stefan Lepecki, Vice President of South America Business at Braskem.

To enable the project, the Board also approved the procurement of additional volumes of ethane through a long-term supply agreement with Petrobras, which is currently in the final stages of negotiation. This measure ensures supply security and operational competitiveness, strengthening the strategic partnership between the two companies.

The project aims to increase the use of gas in Braskem's feedstock matrix, reducing costs and emissions, and making the company's industrial park more modern, sustainable, and competitive. "We are taking an important step in Braskem's energy transition and in the transformation of the chemical industry in Brazil. This is an investment focused on the future-with efficiency, sustainability, and value generation at its core," concludes the executive.

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