The company completes its acquisition of The Dow Chemical CompanyPolypropylene Business; builds its global polypropylene capacity to four (4)million tons per year.
São Paulo, Brazil, September 30, 2011 - Braskem, the leading resin producer inthe Americas, announced the completion of its acquisition of the PolypropyleneBusiness from The Dow Chemical Company, an important milestone in the Company'sglobal expansion. The transaction, announced on July 27, was approved by theEuropean Commission and the Federal Trade Commission and the Antitrust Division ofthe Justice Department of the United States of America.
The assets involved in the deal include two manufacturing plants in the U.S. and two inGermany, 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 befully integrated into Braskem America, Inc. The two German plants located inWesseling and Schkopau will operate under Braskem Europe GmbH.
The deal will deliver approximately $140 million in synergies through a more diversifiedportfolio, leveraged fixed cost base and working capital, logistics and supplyoptimization.
This acquisition brings a strong team that, combined with a worldwide polypropyleneproduction capacity of 4 million tons per year, positions Braskem to provide a broaderportfolio of products and services to its customers.
"Braskem has a long term commitment to the polymers industry. We see enormouspotential for growth and innovation in thermoplastics resins because of the endlessuses in people's everyday lives," said Braskem's Executive Vice President of theInternational Business Unit, Luiz de Mendonca. "We are very excited to grow ourpartnership with our clients in North America and Europe."
Mark Nikolich, formerly VP of Commercial and Supply Chain for Braskem America, hasbeen named CEO and General Manager of Braskem Europe GmbH. Mr. Nikolich bringsto this role over twenty years of experience in polyolefins and chemicals.
Robert Nadin, formerly VP of Innovation and Technology for Braskem America, hasbeen appointed VP of Commercial and Supply Chain for polypropylene in NorthAmerica. Mr. Nadin has more than 25 years of industry experience in a variety ofpositions in research and development, business management, business development,and technology licensing.
Braskem is the largest manufacturer of thermoplastic resins in the Americas. With 35 industrialplants in Brazil, the United States and Germany, the company produces more than 16 milliontons 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 WestVirginia, 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 SchkopauGermany and Wesseling Germany.