PHILADELPHIA and CHARLESTON, S.C., June 1, 2020 /PRNewswire/ -- Braskem (B3: BRKM3, BRKM5 and BRKM6;NYSE: BAK; LATIBEX: XBRK), the largest polyolefins producer in the Americas and leading producer of biopolymers in the world, today announced the selection of Charleston, South Carolina as home to the company's new Global Export Hub to serve Braskem's international customers.
The new Global Export Hub facility will provide packaging, warehousing and export shipping services to support Braskem's U.S. polypropylene (PP) production facilities. With the design and development phase well underway, the new Global Export Hub is expected to be completed by the third quarter of 2020 and will have a capacity to support export shipments of up to 450 million pounds (204 Kilotons) of polypropylene and specialty polymers annually to Braskem customers worldwide.
Braskem is partnering with the Port of Charleston and warehouse provider Frontier Logistics, which will construct, lease and provide services to Braskem under a five-year agreement. Ahead of the facility's completion, the company plans to continue to leverage its existing international export capabilities out of Houston, Texas, which will also be maintained following the launch of the new Charleston Global Export Hub. The announcement of the new South Carolina facility complements Braskem's existing network of Global Export Hubs which include facilities in North America, South America and Europe.
Mark Nikolich, Braskem America CEO commented, "As the largest polyolefins producer in the Americas and the leading producer of polypropylene in the United States, Braskem is focused on reinvesting in its business and leadership positions to support our clients worldwide. The build out of our new Global Export Hub in South Carolina allows us to leverage our feedstock advantaged, polymer production assets in the U.S Gulf Goast, Pennsylvania and West Virginia, to best meet our international clients needs. With excellent access to national rail and highway networks this important new logistics and distribution facility in the South Carolina port region significantly enhances Braskem America's international export capability."
The Port of Charleston features daily express intermodal and merchandise rail services and more than 20 ocean carriers delivering export cargo between Charleston and more than 150 nations around the world. In 2019, the South Carolina Ports Authority (SCPA) handled a record high 2.44 million twenty-foot equivalent container units (TEUs). The new Charleston Global Export Hub facility is being developed as Braskem works to complete Delta, Braskem's new world-class polypropylene production line in La Porte, Texas, which is nearing completion and is scheduled for the launch of commercial production in the third quarter of 2020.
"The polymer resins boom in the Gulf Coast is bringing new cargo to the Southeast," S.C. Ports Authority President and CEO Jim Newsome said. "Braskem selected the Port of Charleston as their East Coast load port due to our market's unfettered resin export capacity, knowledge of the petrochemical industry and efficiently run port terminals. We welcome Braskem as a customer of S.C. Ports. Our strong business partnerships help to ensure S.C. Ports will continue to grow above market."
To support additional shipping growth, the SCPA is currently undertaking a Charleston Harbor Deepening Project allowing for the increased ability to fill large container vessels handling up to 19,000 TEUs with heavy export cargo. Upon completion of Charleston's deepening, the Inner Harbor will offer 52 feet of depth with a 54-feet deep Entrance Channel, making it home to the deepest harbor on the U.S. East Coast. Additionally, the SCPA has embarked on the development of the Hugh K. Leatherman Terminal; phase 1 will open in March 2021, helping ensure capacity and access as volumes continue to grow.
The construction of Braskem America's new Global Export Hub in Charleston, under its agreement with Frontier Logistics, will positively impact economic activity in the region with approximately 150 development and construction workers contracted by Frontier to fully design and construct the facility and 60 permanent employees employed by Frontier after startup. The total economic impact that comes about through the SCPA yields a statewide employment multiplier of 2.4. This implies that, on average, for every 10 jobs that are directly supported by SCPA port operations or port users, an additional 14 jobs are created elsewhere in South Carolina.
ABOUT SOUTH CAROLINA PORTS AUTHORITY
South Carolina Ports Authority (SCPA), established by the state's General Assembly in 1942, owns and operates public seaport and intermodal facilities in Charleston, Dillon, Georgetown and Greer. As an economic development engine for the state, Port operations facilitate 225,000 statewide jobs and generate nearly $63.4 billion annual economic activity. SCPA is soon to be home to the deepest harbor on the U.S. East Coast at 52 feet, and the Port is an industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on SCPA, please visit www.scspa.com.
With a global vision of the future oriented towards people and sustainability, Braskem is committed to contributing to the value chain for strengthening the Circular Economy. The petrochemical company's almost 8,000 team members dedicate themselves every day to improve people's lives through sustainable chemicals and plastics solutions. Braskem has an innovative DNA and a comprehensive portfolio of plastic resins and chemical products for diverse segments, such as food packaging, construction, manufacturing, automotive, agribusiness, healthcare and hygiene, among others. With 41 industrial units in Brazil, the United States, Mexico and Germany, and net revenue of R$52.3 billion (US$13.2 billion), Braskem exports its products to clients in more than 100 countries.
Braskem America is an indirect wholly owned subsidiary of Braskem S.A. headquartered in Philadelphia. The company is the leading producer of polypropylene in the United States, with six production plants located in Texas, Pennsylvania and West Virginia, an Innovation and Technology Center in Pittsburgh, and operations in Boston focused on leveraging groundbreaking developments in biotechnology and advanced materials. For more information, visit www.braskem.com/usa.
FORWARD LOOKING STATEMENTS
This press release contains projections and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events. These statements reflect Braskem's current beliefs and expectations with respect to Braskem's business, the economy and other future conditions and are based on assumptions, are subject to risk and uncertainties and are subject to change at any time. Actual events or results may differ materially from those contained in such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the continuation of restrictions related to the COVID -19 Pandemic or the continuing effects of the Pandemic; (ii) the contraction or lack of growth in the market segments in which Braskem competes and in which its products are sold (ii) unexpected delays in commissioning, (iii) increased competition from imports or in the export markets, (iv) inability to anticipate future market trends and the future needs of Braskem's customers, (v) the impact of natural disasters on Braskem's La Porte facility and its suppliers and (vi) other factors detailed in documents Braskem files from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.