 "Kevin McQuade, CEO, Styrolution")
Styrolution, the global leader in styrenics, and Braskem, the largest producer of thermoplastic resins in America and a global leader in biopolymers, have agreed to suspend all project activities related to a future joint venture in Brazil. The decision was driven by Styrolution and was a result of the current adverse market conditions and uncertain market outlook.
In October 2013, both parties signed a memorandum of understanding (MOU) to investigate the potential formation of a joint venture to build and operate an acrylonitrile butadiene styrene (ABS) plant in Brazil. The proposed 100 kilo tonne (kt) plant was intended to supply specialty styrenics, ABS and styrene acrylonitrile (SAN) copolymers, to customers in Brazil and throughout South America. In the meantime, the market and business environment in South America and in specifically Brazil deteriorated significantly as compared to 2013. This opportunity could be revisited once market dynamics and future demand outlook have sustainably turned favourable again.
With a population of over 200 million the Brazilian market still remains attractive in the mid and long-term once the current economic downturn is overcome and the joint venture’s key target industries, such as household appliance and automotive industries return to the previous significant growth rates.
“Styrolution was very pleased with the trustful and excellent partnership with Braskem to explore the opportunities of the joint venture. Sadly, the rapid deterioration of the business climate in the region has significantly increased market and project execution risk,” said Kevin McQuade, CEO, Styrolution.
