As a result of expansion, isoprene plant production capacity will increase by 48% by the end of 2006

Braskem, the leading petrochemical company in Latin America, is investing R$ 77 million to expand isoprene production capacity in its Basic Petrochemicals Unit, in the state of Bahia. As a high value-added raw material, isoprene is mostly used in the production of special adhesives employed in the manufacturing of stationery, disposable diapers, Idustrial wood agglomerate and adhesive tapes, among other products. The isoprene poduction capacity expansion is scheduled to be concluded by the end of 2006.

This initiative is part of Braskem"s strategy to add value to main naphtha chainsprocessed by the Basic Petrochemical Unit, aimed at increasing the Company"s profitability. The isoprene produced by Braskem, the only producer in Brazil, is highly pure, with low availability in international markets. "The scarcity of this product in the market combined to its high quality place isoprene as one of the highest value-added products produced by Braskem", as explained by Bernardo Gradin, Braskem"s Basic Petrochemicals Unit Vice President.

Braskem"s isoprene production capacity will increase from current 18,000 ton/year to 26,500/ton year by the end of 2006, which represents growth of nearly 50%. The project´s IRR (internal rate of return) is 49%, a high level of return.

In order to increase the isoprene plant production capacity, Braskem"s engineers have developed their own process "know-how," based on original technology acquired from Japan. "This achievement confirms Braskem"s pursuit of technological autonomy and its commitment to develop its own technology, based on best practices and techniques applied worldwide", Gradin added.
2 With this expansion, Braskem will consolidate its privileged position in the isoprene global market. "We are preparing to broaden our presence in the market by entering into long term agreements with companies which are leaders in the application of isoprene worldwide", Roberto Bischoff, Braskem"s Commercial Vice President of Basic Petrochemicals, said.