Wedoany.com Report-Oct. 28, Braskem S.A., based in São Paulo, Brazil, announced that its Board of Directors has approved an estimated R$4.2 billion investment to expand its petrochemical complex in Rio de Janeiro by 220,000 tons of ethylene per year, along with corresponding volumes of polyethylene. The initial phase of basic engineering, budgeted at R$233 million, had been approved in February 2025.

This expansion is part of Braskem’s Transformation Program, aimed at enhancing industrial competitiveness and modernizing operations. Scheduled for completion by the end of 2028, the project depends on securing additional financing beyond resources already approved under the REIQ Investments – Special Regime for the Chemical Industry – for 2025 and 2026. The company is evaluating the optimal capital structure to support the project.

Stefan Lepecki, Vice President of South America Business at Braskem, said: “Despite the current challenging global scenario, we must ensure that Braskem remains competitive in the new global petrochemical landscape, securing its survival and long-term sustainability. The investment in the Rio de Janeiro petrochemical complex demonstrates our confidence in Brazil’s potential and Braskem’s commitment to contributing to a sustainable reindustrialization of the sector, driven by innovation and value creation.”

To support the expansion, Braskem’s Board approved a long-term ethane supply agreement with Petrobras, currently in final negotiation stages. This measure is intended to secure feedstock supply and maintain operational competitiveness, reinforcing the strategic partnership between the two companies.

The project also aligns with Braskem’s energy transition goals. By increasing the use of gas in its feedstock matrix, the company expects to reduce costs and emissions while making the Rio de Janeiro complex more modern, sustainable, and competitive.

“The project represents an important step in Braskem’s energy transition and the transformation of Brazil’s chemical industry. This is an investment focused on the future—with efficiency, sustainability, and value generation at its core,” Lepecki added.

Overall, the expansion underlines Braskem’s long-term commitment to innovation, operational efficiency, and sustainability in the petrochemical sector. The project is expected to strengthen Brazil’s industrial capabilities while enhancing Braskem’s competitiveness in the global petrochemical market. The company continues to advance discussions on financing and capital structure to ensure the project’s successful execution.

This development reinforces Braskem’s strategic focus on integrating advanced technology, modernizing infrastructure, and supporting the chemical sector’s transition toward lower emissions and more efficient production methods. The expanded capacity is expected to contribute to both domestic supply and export potential, consolidating the company’s position as a leading player in South America’s petrochemical industry.