Polymers stocks safe in storm-hit Brazil: Braskem

Brazilian petrochemical giant Braskem said its polymer inventories are safe and protected from the damage caused by heavy rainfall at its operations in southern Brazil during the past two weeks.

The inventories include polyethylene (PE), polypropylene (PP), ethylene and basic chemicals.

Braskem had to shutdown all of its operations in Rio Grande do Sul state after the extreme weather event in recent days, the company told Argus on Wednesday, on the sidelines of the NPE Plastics fair in Orlando, Florida.

The shutdown was completed safely, with no harm to the company's plants at the Triunfo petrochemical hub, which represents about 30pc of its ethylene production capacity in Brazil.

Braskem is reevaluating its supply chain strategy to deal with the lack of production at the Trinfo hub. This includes serving its clients with PE produced at other company hubs in Brazil and Mexico, where it owns PE manufacturing joint venture Braskem Idesa.

The same goes for PP and polyvinyl chloride (PVC), with other production hubs serving customers if the weather situation does not improve in the coming days.

Operations at Braskem's 260,000 t/yr bio-based PE plant will restart as soon as conditions improve, the company said.

No fatalities occurred at the company's operations, but part of its workforce has lost their homes and are being taken care of by Braskem, according to the company.

State governor Eduardo Leite called the the flooding "the worst disaster in Rio Grande do Sul's history." There are 100 people dead and 128 missing, according to the state's civil defense.

Braskem said it will resume its operations gradually, after weather conditions normalize and logistics in the state such as airports, railroads and flooded roads resume.

Braskem is the largest producer of thermoplastic resins in the Americas and a leader in biopolymer production.

By Frederico Fernandes