SAO PAULO, Sept. 30, 2011 /PRNewswire/ -- Braskem, the leading resin producer in the Americas, announced the completion of its acquisition of the Polypropylene Business from The Dow Chemical Company, an important milestone in the Company's global expansion. The transaction, announced on July 27, was approved by the European Commission and the Federal Trade Commission and the Antitrust Division of the Justice Department of the United States of America.
The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 1.05 million tons. The two US manufacturing plants located in Freeport, Texas and Seadrift, Texas will be fully integrated into Braskem America, Inc. The two German plants located in Wesseling and Schkopau will operate under Braskem Europe GmbH.
The deal will deliver approximately $140 million in synergies through a more diversified portfolio, leveraged fixed cost base and working capital, logistics and supply optimization.
This acquisition brings a strong team that, combined with a worldwide polypropylene production capacity of 4 million tons per year, positions Braskem to provide a broader portfolio of products and services to its customers.
"Braskem has a long term commitment to the polymers industry. We see enormous potential for growth and innovation in thermoplastics resins because of the endless uses in people's everyday lives," said Braskem's Executive Vice President of the International Business Unit, Luiz de Mendonca. "We are very excited to grow our partnership with our clients in North America and Europe."
Mark Nikolich, formerly VP of Commercial and Supply Chain for Braskem America, has been named CEO and General Manager of Braskem Europe GmbH. Mr. Nikolich brings to this role over twenty years of experience in polyolefins and chemicals.
Robert Nadin, formerly VP of Innovation and Technology for Braskem America, has been appointed VP of Commercial and Supply Chain for polypropylene in North America. Mr. Nadin has more than 25 years of industry experience in a variety of positions in research and development, business management, business development, and technology licensing.
Braskem is the largest manufacturer of thermoplastic resins in the Americas. With 35 industrial plants in Brazil, the United States and Germany, the company produces more than 16 million tons of thermoplastic resins and other petrochemical products annually.
Headquartered in Philadelphia, Braskem America, a wholly owned subsidiary of Braskem S.A., has five production facilities, including three in Texas, one in Pennsylvania and one in West Virginia, as well as its Technology and Innovation Center in Pittsburgh. Braskem Europe GmbH, a wholly owned subsidiary of Braskem S.A., operates two production facilities in Schkopau Germany and Wesseling Germany.
SOURCE Braskem S.A.