Investor Presentaiton
2016 Braskem | Annual Report
COMMISSIONING THE UTEC
PLANT IN THE UNITED STATES
In 2016, Braskem commissioned its first Ultra-High
Molecular Weight Polyethylene (UHMWPE) plant in the
United States in La Porte, Texas. The unit will enable
better customer service in North America and Europe,
and starts operations supported by improvements at the
Pittsburgh Innovation and Technology Center in the United
States aimed toward increasing research and development
capacity in UHMWPE. The resin, developed from Braskem's
own technologies, is eight times lighter than steel and ten
times more durable than high density polyethylene (HDPE).
Its diverse applications cover sectors such as automotive
and transportation, electronics, fiber and textiles,
industrial and heavy machinery, material handling, oil and
gas, pipelines and mining, porous plastics, and recreation.
BRASKEM IDESA REACHES AN AVERAGE UTILIZATION
RATE OF 73% IN ITS FIRST YEAR OF ACTIVITY
The year 2016 was also highlighted by the contribution of the result of the first year of operations
of the Braskem Idesa Petrochemical Complex in Mexico. In line with the estimates planned for the
first year of activities, the unit recorded an average operating rate of 42% of the polyethylene
plants and EBITDA of US$ 163 million (BRL 530 million), representing 5% of the total consolidated
EBITDA of Company segments.
In 2016, the focus was mainly on stabilizing the production of the Petrochemical Complex,
consolidating the service and relationship with Mexican Clients, and exporting in synergy with
Braskem's operations in other regions.
It is important to highlight the operational evolution of the Complex over the period. After the
cracker's departure in March, the three polyethylene plants began operation in June, which enabled
the average plant utilization rate to reach 42% in the second half of 2016, reaching 73% in the
fourth quarter.
FLEXIBILITY OF RAW MATERIALS
IN BAHIA
As part of the strategy to expand the diversification of raw
materials for production, Braskem has made progress with the
project at the Camaçari plant in Bahia (Brazil) toward making
it suitable to receive ethane. With an investment of BRL 380
million and beginning operations scheduled for the second
half of 2017, the project includes modernizing the industrial
unit and adapting the region's port infrastructure. By the end
of 2016, Braskem had already invested BRL 120 million. In
addition, the Company entered into a supply agreement with
an affiliated company of Enterprise Products Partners L.P.
(NYSE: EPD) for ethane imported from the United States. The
term of the agreement is ten years and price based on the
international benchmark Mont Belvieu.
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