Value Creation

Value Creation

Braskem is working on the following drivers to create value for its shareholders:

Transform For Value Program

In early 2020, Braskem created the Transform For Value (TFV) Program to coordinate, accelerate and give focus to the company's main improvement initiatives. Based on the concepts of a Transformation Office, which are often used by private equity funds in their investees, the program has four goals: (i) to consolidate visions, (ii) to prioritize initiatives, (iii) to accelerate the capture of gains and (iv) to communicate results.

The consolidated vision of the TFV Program encompasses the actions not only of the Transformation Office, but also the Digital Center and energy, continuous industrial improvement and Cost & Productivity (C&P) CAPEX projects. The program, which has a global scope, will focus currently on initiatives that can deliver gains by end-2023 and use a phase-to-phase scheme to manage and communicate the advances of each initiative.

In 2020, the TFV Program advanced in its implementation of the initiatives mapped to end the year with the capture of US$55 million/year. During the first half of 2021, the Transform for Value (TFV) Program continued to make progress in mapping new opportunities and in its implementation of the initiatives already mapped, ending the half-year with initiatives with the potential to capture US$147 million/year.

Lastly, the Company believes that estimated recurring gains by 2023 could reach approximately US$440 million annually.

Capacity Expansion & Energy Efficiency Projects?

Project to expand biopolymers production capacity in the Triunfo Petrochemical Complex, in Rio Grande do Sul

Expansion of current green ethylene production capacity from 200 kta to 260 kta using feedstock made from sugarcane ethanol and used to produce "I'm Green"TM resins, with operational startup expected for the end of 2022 and investments estimated at US$61 million. The Project is aligned with the Company' goals of reducing its greenhouse gas emissions by 15% by 2030 and of reaching carbon neutrality by 2050, while also reinforcing its position as the global leader in biopolymers production to meet clients' needs and drive growth in the Circular Economy.

Project to produce high-quality recycled resin

In partnership with Valoren, a company specializing in developing and operating technologies for transforming solid waste, Braskem will invest R$67 million in the construction of a recycling line with capacity to transform some 250 million pieces of packaging into 14,000 tons of high-quality, post-consumer resin per year. The project will be installed in Indaiatuba, in São Paulo state's interior region, and is expected to start operations in the fourth quarter of 2021.

Energy efficiency project for ABC petrochemical complex

In partnership with the German-based company Siemens, the Company is modernizing its ABC petrochemical complex in São Paulo. With total estimated investment of R$600 million, considering the disbursements from Braskem and Siemens, the project includes replacing the steam turbines that currently meet the needs of the complex with high-speed electrical engines developed with state-of-the-art and high-performance technology. The modernization project is expected to be concluded during 2021.

Projects in Economic & Financial Feasibility Study

Opportunity to expand ethane imports in Mexico

Evaluation by Braskem Idesa of a complementary solution for importing ethane, whose scope consists of the construction of an import terminal for ethane and a pipeline to transport it to the petrochemical complex.

Opportunities to expand biopolymers business

Evaluation of opportunities to expand the biopolymers business by building new plants in Brazil and/or other regions, mainly for "I'm Green"TM polyethylene, which maintains the same properties, performance and versatility of conventional resins, with the competitive advantage of capturing up to 3.09 tons of carbon gas during its production process.

Opportunities to diversify feedstock profile and suppliers competitiveness through the use of Liquids and Pre-salt Natural Gas

Evaluation of opportunities for expanding the production capacity and diversifying the feedstock mix in southeastern Brazil based on new gas availability from the development of new gas outflow routes from the Pre-salt.