Brazil’s Braskem approves $780 million expansion at its Rio petrochemical complex
Braskem has approved an estimated R$ 4.2 billion (about $780 million) investment to expand production capacity at its petrochemical complex in Rio de Janeiro, Brazil, marking a major step in its long-term industrial growth
Braskem has approved an estimated R$ 4.2 billion (about $780 million) investment to expand production capacity at its petrochemical complex in Rio de Janeiro, Brazil, marking a major step in its long-term industrial growth and modernization strategy.
The project will add 220,000 tons/year of ethylene capacity, along with equivalent volumes of PE output. According to CommoPlast data, their plant in Triunfo currently houses a 300,000 tons/year LLDPE unit, a 385,000 tons/year LDPE unit, and a 500,000 tons/year HDPE unit.
A preliminary phase of basic engineering, valued at R$ 233 million (around $43 million), was approved in February 2025. The expansion forms part of Braskem’s wider Transformation Program, which aims to enhance operational competitiveness and modernize its industrial assets.
The company expects the expansion to be completed by the end of 2028. Progress will depend on securing additional financing beyond allocations under the REIQ Investments (Special Regime for the Chemical Industry) for 2025 and 2026. Braskem said it continues to evaluate the most suitable capital structure to support the project.
The investment is intended to strengthen Braskem’s competitiveness amid a challenging global petrochemical landscape, while reaffirming its commitment to Brazil’s industrial base and economic development. It also reflects the company’s confidence in the country’s growth prospects and aligns with its vision of spurring a more sustainable, innovation-driven petrochemical sector.
As part of the initiative, Braskem’s board also approved plans to procure additional ethane feedstock through a long-term supply agreement with Petrobras, currently in the final negotiation stage. The deal is expected to boost feedstock security, improve operational efficiency, and deepen collaboration between the two companies.
By increasing the share of gas in its feedstock mix, the expansion aims to lower production costs and carbon emissions, supporting Braskem’s broader goal of building a more sustainable and competitive industrial footprint.
Written: Farid Muzaffar