Braskem reduces production of ethylene in Brazil, Polypropylene in U.S. due to lower demand

Braskem SA announced to its shareholders and the market about the main actions that have been adopted by the company due to the evolution of the COVID-19 outbreak and the impacts resulting from its operations.

In line with its fundamental value, Safety, the company started to operate its industrial assets with minimal teams. The reduction of around 50% of the contingent of members and third parties allows keeping activities safe for people and with reliability in operations.

Usage rates in Brazil and the United States were temporarily reduced due to lower demand and the movement to reduce inventories in the petrochemical and plastics production chain. Operating fees will accompany market demand and new export opportunities that may arise in other regions, mainly with the resumption of activities in Asia. The main adjustments so far were:

Brazil: reduction of ethylene production in Brazil to approximately 65% of its total capacity, which is 3.6 million tons / year.
United States: reduction of polypropylene production to approximately 85% of capacity, which is 1.6 million tons / year.

The company also highlighted its responsible performance on four relevant fronts: actions taken jointly with customers and other partners to transform plastic resins and chemicals into essential items to combat COVID-19, including surgical masks, packaging for liquid alcohol and gel, bleach and 3D printing of rods for protective masks; donation of LPG to field hospitals; actions to support the chain of customers and suppliers, especially small and medium-sized companies; and donations of hygiene kits and food baskets to the affected communities around their plants.