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Braskem Sa of Brazil will cancel the petrochemical project with a scale of billions of dollars

Braskem Sa of Brazil will cancel the plan to invest billions of dollars in Rio de Janeiro to build the largest petrochemical expansion plant, which may indicate that the project, which has been postponed several times in the past two years, will come to an end, mainly due to market turmoil and rising raw material costs

Carlos fadigas, President of the company, said on February 12 that after studying the investment options, he decided to expand the capacity of another factory, which will have a higher return on investment than building a new factory

Brazilian state-owned oil company Petr ó Leo Brasileiro SA (PE to achieve optimal performance and durability trobras) is the project partner of Braskem. Last year, it was revealed that the cost of building the plant would reach 13.2 billion US dollars. The project originally planned an annual output of nearly 2billion pounds (900000 tons) of polypropylene, 2.1 billion pounds (950000 tons) of polyethylene, and 881million pounds of styrene. Due to the frequent use of the jaws of electronic tensile testing machines (400000 tons) and 340million pounds (150000 tons) of butadiene, it also included the second generation products and resins in the benzene and Braskem product portfolio

petrobras said in January that it was revising the project construction schedule after a widespread corruption and money laundering investigation. The investigation triggered a class action lawsuit against the company across the United States, leading to the resignation of the president and five senior executives of the company in early February

as the only naphtha buyer in Brazil and the largest supplier in the local chemical industry, Braskem signed a contract with Petrobras worth 9billion rials (3.18 billion US dollars), which expired in 2014, but the two sides renewed the contract until February 28 this year. The two companies had a public dispute over a long-term raw material price agreement

the recent delay has avoided the shutdown of several petrochemical plants of Braskem, which will paralyze Brazil's chemical industry. Braskem officials have warned that if Petrobras raises the price of naphtha by% as expected, they will close the plant

braskem uses 10million tons of naphtha every year, which is a main raw material used by the company. More than 70% of them are from P. it is expected that the growth momentum will remain good in the next few years

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