Braskem Completes Acquisition of Sunoco Chemicals

PHILADELPHIA, April 1 /PRNewswire-FirstCall/ -- Braskem S.A. (NYSE: BAK), the eight-largest thermoplastic resin producer in the world and largest in the Americas, announced today that it has completed its acquisition of the polypropylene business of Sunoco Chemicals. With the acquisition, which was initially announced on February 1, Braskem invested $350 million as part of its strategy to establish an industrial base in the United States, which will serve as an important platform for its future international expansion.

The U.S. operations for Braskem now have the capacity to produce two billion pounds of polypropylene per year, which represents 13 percent of the country's installed PP production capacity. The acquisition of Sunoco Chemicals and the resulting synergies provide customers with a broader portfolio of products and services.

With the acquisition of these assets, Braskem strengthens its international expansion strategy and its position as one of the global leaders in the polypropylene industry. The company becomes the world's third-largest producer of polypropylene with annual production capacity of 6.5 billion pounds per year.

"We will take advantage of the experience of the current Sunoco Chemicals key executives, who have excellent knowledge of U.S. market. And the team will be reinforced by the arrival of new leaders who will bring expertise and practical experience of Braskem's successful strategy and business culture," said Bernardo Gradin, Braskem's CEO.

With headquarters of U.S. operations in Philadelphia, Braskem has three industrial units located in La Porte, Texas; Marcus Hook, Pa; and Neal, W.V., as well as its Technology and Innovation Center in Pittsburgh.  For the employees in the United States, the acquisition by a company with polypropylene as part of its core business will bring new opportunities for growth and expanded customer relationships.

In addition to polypropylene, Braskem's core business also includes polyethylene and PVC. With annual gross revenue of nearly $12 billion, the company integrates in the first- and second-generation of the petrochemical chain. In 2009, Braskem exported $2.5 billion worth of products to more than 50 countries, which included resins and basic petrochemicals such as benzene and toluene.

ABOUT BRASKEM

Braskem is the largest producer of thermoplastic resins in the Americas. With 29 plants located throughout Brazil and the Unites States, the company produces more than 14 billion pounds of thermoplastic resins each year.

SOURCE Braskem S.A.