11 Jul, 2017, 08:00 ET
LA PORTE, Texas and PHILADELPHIA, July 11, 2017 /PRNewswire/ -- Braskem (BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK), the largest thermoplastics resins producer in the Americas, today announced that The Linde Group, a world-leading gases and engineering company, has been selected as the lead engineering, procurement, and construction (EPC) contractor to build Braskem's new world-scale North American polypropylene (PP) production line. Linde offers comprehensive project development services for polyolefin industrial plants, ranging from front end engineering design (FEED) to complete EPC execution and is an approved contractor for UNIPOL™ Polypropylene Process Technology.
Braskem has committed up to $675 million towards the design and construction of the new PP production line named Delta which will be located next to Braskem's existing production facilities in La Porte, Texas. With the engineering design phase well underway, the new plant will have a production capacity of 450 kilotons (kt), or the equivalent of approximately 1 billion pounds, per year.
Mark Nikolich, Braskem North America Chief Executive Officer, stated, "Today we are pleased to announce another significant step forward in the development of Delta, which is set to be the largest polypropylene production line in the Americas. The selection of The Linde Group as our lead EPC contractor follows a highly competitive selection process. With the experience of having built more than 4,000 plants in more than 100 countries, Linde brings leading edge technology solutions for plant engineering, as well as strong global construction procurement skills and deep specialty experience in UNIPOL™ PP industrial plant design. We are excited to partner with Linde on this important project as we continue to execute on Braskem's global growth strategy and extend our position as the leading producer of polypropylene in the Americas."
Dr. Christian Bruch, Member of the Executive Board of the Linde Group and responsible for the company's engineering business, said, "After decades without significant capacity additions in the US the industry is seeing a strategic change in US polypropylene supply. Based on our experience with the UNIPOL™ polypropylene process we have developed a proven track record in delivering measurable benefits to our customers, from design to construction. We are excited to support Braskem in their strategic growth plan in this important market."
The construction of Braskem's new Delta production line is expected to positively impact economic activity in the La Porte region, employing approximately 1,000 development and construction workers to fully construct the facility. Construction is expected to begin mid-summer 2017, with the final phase of main construction targeted for the first quarter of 2020. The Delta production line design is being developed directly in-line with Braskem's commitment to sustainability and attention to eco-indicators such as emissions, water and energy efficiency, as well as recycling and waste reduction.
For additional information on Braskem's new Delta production line announcement and progress please visit www.braskem.com.br/usa/delta.
About The Linde Group
In the 2016 financial year, The Linde Group generated revenue of EUR 16.948 bn, making it one of the leading gases and engineering companies in the world, with approximately 60,000 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business, with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at www.linde.com.
Braskem is one of the world's leading plastics and chemical companies with 41 industrial plants in Brazil, the United States, Germany and Mexico.
Braskem is the largest producer of thermoplastic resins in the Americas and the leading producer of biopolymers in the world, creating more environmental-friendly, intelligent and sustainable solutions through chemicals and plastics. Known for innovative solutions such as I'm green Polyethylene™ made from renewable sugarcane and UTEC®, the company's own trademarked Ultra High Molecular Weight Polyethylene for high performance applications, Braskem's products and technologies enable the automotive, packaging, healthcare, and construction industries to produce goods that enhance quality of life for people around the world.
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 lines located in Texas, Pennsylvania and West Virginia, and an Innovation and Technology Center in Pittsburgh. For more information, visit www.braskem.com.
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, 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 contraction or lack of growth in the market segments in which Braskem competes and in which Braskem products are sold (ii) unexpected delays in commissioning Delta, (iii) increased competition from imports, (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.
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