By Brazil Stock Guide – Braskem (B3: BRKM5; NYSE: BAK) said its board has approved a plan to invest about R$4.2 billion (US$710 million) to expand its ethane-based ethylene and polyethylene capacity at its Rio de Janeiro petrochemical complex — but the project’s implementation remains conditional on securing financing and finalizing a long-term feedstock agreement with Petrobras.
The expansion would add 220,000 tons per year of ethylene capacity by late 2028, in line with Braskem’s ongoing transformation plan to boost competitiveness through a greater use of natural gas in its production mix. The estimated investment cost may vary by up to 30%, reflecting the project’s early maturity stage. Braskem expects to combine new credit facilities with incentives from the REIQ (Regime Especial da Indústria Química) program for 2025 and 2026.
Chief Financial Officer Felipe Montoro Jens said the move underscores Braskem’s strategic shift toward gas-based production and operational efficiency. “This project strengthens the company’s competitiveness and sustainability goals,” he said in a statement.
If executed, the Rio expansion would represent a major step in Braskem’s broader industrial transition, reducing exposure to oil-based feedstocks and volatile nafta prices. The company said it will update investors as financing discussions and Petrobras negotiations progress.
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