Braskem holds 60 percent of the joint venture while Petroquisa 40 percent. Petrobras will provide for the high polymer propylene that will be used as raw material and that is produced at Petrobras’s Refineries: Paulinia (Replan) and Henrique Lage (Revap), both located in the Sao Paulo State. These refineries are constructing two propylene units that will produce the propylene necessary for Petroquimica Paulinia S.A.

The Revap propylene construction is being carried out by a consortium between Odebrecht (70 percent) and UTC Engenharia (30 percent), and construction work has begun in August 2007 and is programmed to end in July 2008. The Replan refinery propylene unit addition is being carried out by UTC Engenharia, and it will produce 265,000-tpa. Both construction contracts at Revap and Replan have been valued at $166 million and $210 million respectively. The 265,000 tons production from the new unit at Replan Refinery will feed Petroquimica Paulinia Polypropylene plant and Revap will provide for the remaining 35,000-tpa.

According to authorities from Braskem, the joint venture with Petroquisa shows confidence on the part of both companies in the growth of the Brazilian economy and the regional thermoplastics resins markets, in which polypropylene consumption has evolved at a high speed. Furthermore, Petroquisa’s officials have stated that Petroquimica Paulinia represents a confirmation of the decision of the company in having a strategic part on the development of the Brazilian petrochemical sector. (Source: Industrial Info Resources)