Braskem announced the signing of an agreement with its partner Pequiven, the Venezuelan petrochemical company, to supply resin aimed at supplying that country’s during the pre-marketing phase that will precede Propilsur and Polimérica operations, mixed companies constituted by both firms. The memo, signed during the meeting between the Presidents of Brazil and Venezuela last Friday, establishes a monthly supply by Braskem of up to 5 thousand tons of polyethylene and polypropylene resins for exclusive commercialization in Venezuela.

"This agreement represents an important step in the consolidation of our partnership with Pequiven, based on cooperation and trust between our companies, as well as a solid measure to provide support to Venezuelan economic growth," says Sérgio Thiesen, director superintendent of Braskem Venezuela. "We are strengthening the bases for a long-term contract in order to keep the Venezuelan market fully served while we continue implementing our joint projects at the Jose Complex in the region of Anzoátegui, which are accompanying the defined timetable," adds Thiesen.

Braskem and Pequiven have equal participations in Propilsur and Polimérica, as per a shareholder agreement signed by both companies at the end of 2007. Propilsur will be responsible for the integrated polypropylene project with capacity to produce 450 thousand tons/year and estimated investments of US$ 880 million, projected to start operations at the end of 2010. The project’s financial structure projects the use of nearly 30% of own resources and 70% being financed. This is already underway and from the reception demonstrated by the international financial market at the recent roadshow, it should be concluded by the end of this year.

Polimérica, a mixed company in which Pequiven and Braskem have equal shares, will be responsible for investing in the integrated polyethylene complex, using natural gas, and estimated at US$ 2.6 billion, with capacity to produce more than 1.1 million tons/year and projected to begin operations in 2012.

"As part of Braskem’s strategy to gain access to raw materials in competitive conditions, Venezuela has one of the largest reserves of oil and natural gas in the world and so it was chosen as the initial platform for the company’s internationalization process," says Thiesen. "In partnership with Pequiven, we are going to build petrochemical projects here as competitive as those in the Middle East," he ensures.