Integrated Report 2020

Braskem INTEGRATED REPORT 2020 CAPITAL PERFORMANCE A MESSAGE FROM THE BUSINESS LEADER BRASKEM STRATEGIC PLANNING ABOUT THE REPORT CREDITS < 39 > Utilization Rates and Sales We aim to increase the utilization of our petrochemical plants to dilute fixed costs and make our operations more competi- tive. In 2020, our capacity utilization rates in general were affected by the temporary reduction in activities with the sluggish demand amidst the COVID pandemic; by scheduled shutdowns in the United States and Europe; and by the temporary inter- ruption of natural gas supply in Mexico. Yet the strong demand for thermoplastic resins led to increasing volume of sales in the Brazilian market, with a historical quarterly record of resins sold, as well as higher volume of sales in the United Sta- tes, Europe and Mexico. Renewal of Raw Material Contracts We renewed the raw material contracts in Brazil with Petrobras, with guaranteed supply of naphtha to the industrial units in São Paulo, Bahia and Rio Grande do Sul, and of ethane and propane to Rio de Janeiro. The prices in the five-year contracts are based on international references. Additionally, to ensure access to the na- phtha logistics system in Rio Grande do Sul, we have also renewed tanking contracts with Petrobras as well as handling and tanking contracts with Petrobras Transporte S.A. + You can checkour 2020 operating result by region in our Management Report. The Delta Project became the largest polypropylene plant in the United States, with 450,000 tons annual production capacity New PP Plant in the USA (Delta Project) Our polypropylene production was strengthened in 2020 with the opening of the new PP plant in La Porte, Texas. This is the largest polypropylene plant in the US (estimated annual production capa- city >450,000 tons per year), and makes us the largest PP producer in the Americas. As the first plant built by Braskem in the US, the Delta Project features the most advanced technology for polypropylene pro- duction. Aligned with the principles of sustainability and eco-ef- ficiency, the plant will have lower emission levels and generate less waste, operating with greater energy and water efficiency and fostering recycling activities. The total investment in the new facility was US$ 750 million, and the new unit will boost both exports and domestic sales in the US market. Operations started in September with significant ramp-up to 101,000 tons and 90% utilization rate by the end of 2020. Our modern innovation and technology center in Pittsburgh, Pennsylvania, enables us to deliver pioneering polymers to our customers. We have also announced the development of our global export center in Charleston, South Carolina, to better serve international clients. + For more information about our new PP plant in the United States (Delta Project), click here. Ethylene Supply in Mexico Braskem Idesa is a joint venture formed in 2010 in which Braskem holds 75% of the capital and Mexican Idesa holds the remaining 25% under a shareholder agreement. The company's petrochemical complex uses ethane as a raw material and consumes utilities such as water, energy and natural gas. The operation has long-term input supply agreements: ethane is supplied directly by Pemex and natural gas mainly by the same state-owned company, in this case through Cenegas. Since 2017, Braskem Idesa has received lower volu- mes of ethane from Pemex than established in the supply contract. In 2019, in order to increase the use of the petrochemical plant, Braskem Idesa imple- mented an alternative logistics solution for impor- ting ethane from the United States through a priva- te terminal in Coatzacoalcos, and we are involved in ongoing discussions with the state company in the search for constructive solutions to address the lack of ethane in Mexico. At the end of 2020, Cenegas, the state agency responsible for the pipeline and natural gas trans- portation system in the region, unilaterally inter- rupted the flow of natural gas to our petrochemical complex, paralyzing our activities due to the lack of

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