Braskem (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) ("Company"), the lsrgest polyolefins producer in the Americas and leading producer of biopolymers in the world, today announced the first international shipment of polypropylene from the Company's new Global Export Hub in Charleston, S.C.
Braskem's new Global Export Hub facility provides packaging, warehousing and export shipping services to support the Company's six U.S. polypropylene (PP) production facilities: four in Texas (La Porte, Oyster Creek and Seadrift), one in Pennsylvania (Marcus Hook), and one in West Virginia (Kenova). The Global Export Hub has the capacity to support export shipments of up to 450 million pounds (204 Kilotons) of polypropylene and specialty polymers annually to Braskem clients worldwide.
Braskem is partnered with the Port of Charleston and third party logistics providers to construct, lease, and provide services to Braskem under a five-year agreement. Braskem will also continue to leverage its existing international export capabilities out of Houston, Texas. The new South Carolina facility also complements Braskem's existing network of Global Export Hubs which include facilities in North America, South America, and Europe.
Mark Nikolich, Braskem America CEO commented, "As the largest polyolefins producer in the Americas and the leading producer of polypropylene in North America, Braskem is focused on reinvesting in its business and leadership positions to support our clients worldwide. Our new Global Export Hub in South Carolina provides additional flexibility to our global Polypropylene business."
Alexandre Elias, Vice President, Olefins & Polyolefins North America, additionally commented that "Given the current tight North American market, we are prioritizing our domestic clients, but over time, the hub will allow us to leverage our feedstock advantaged, polymer production assets in the U.S Gulf Goast, Pennsylvania, and West Virginia, to best meet our international clients needs. With excellent access to national rail and highway networks this important new logistics and distribution facility in the South Carolina port region significantly enhances Braskem America's international export capability."
The Port of Charleston features daily express intermodal and merchandise rail services and more than 20 ocean carriers delivering export cargo between Charleston and more than 150 nations around the world. In 2019, the South Carolina Ports Authority (SCPA) handled a record high 2.44 million twenty-foot equivalent container units (TEUs).
Construction activity to support Braskem America's new Global Export Hub in Charleston has positively impacted the economic activity in the region with approximately 150 development and construction workers contracted throughout the process to fully design and build the facility. Additionally, approximately 60 new permanent jobs have been created in the Charleston region to support the facility covering on-site operations management, packaging, logistics, and more. The total economic impact that comes about through the SCPA yields a statewide employment multiplier of 2.4. This implies that, on average, for every 10 new jobs that are directly supported by SCPA port operations or port users, an additional 14 jobs are created elsewhere in South Carolina.
ABOUT SOUTH CAROLINA PORTS AUTHORITY
South Carolina Ports Authority (SCPA), established by the state's General Assembly in 1942, owns and operates public seaport and intermodal facilities in Charleston, Dillon, Georgetown and Greer. As an economic development engine for the state, Port operations facilitate 225,000 statewide jobs and generate nearly $63.4 billion annual economic activity. SCPA is soon to be home to the deepest harbor on the U.S. East Coast at 52 feet, and the Port is an industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on SCPA, please visit www.scspa.com .
FORWARD LOOKING STATEMENTS
This press release contains projections and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events. These statements reflect Braskem's current beliefs and expectations with respect to Braskem's business, the economy and other future conditions and are based on assumptions, are subject to risk and uncertainties and are subject to change at any time. Actual events or results may differ materially from those contained in such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the continuation of restrictions related to the COVID -19 Pandemic or the continuing effects of the Pandemic; (ii) the contraction or lack of growth in the market segments in which Braskem competes and in which its products are sold (ii) unexpected delays in commissioning, (iii) increased competition from imports or in the export markets, (iv) inability to anticipate future market trends and the future needs of Braskem's customers, (v) the impact of natural disasters on Braskem's La Porte facility and its suppliers and (vi) other factors detailed in documents Braskem files from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.