New Global Export Hub to Support Braskem’s U.S.
Polypropylene Production Facilities with Packaging, Warehousing and
Shipping Services to International Customers
Facility to Support Global Exports up to 450 Million Pounds Annually and Complements Braskem’s Existing Network of Global Export Hubs
PHILADELPHIA
and CHARLESTON, S.C., June 1, 2020 /PRNewswire/ — Braskem (B3:
BRKM3, BRKM5 and BRKM6;NYSE: BAK; LATIBEX: XBRK), the largest polyolefins
producer in the Americas and leading producer of biopolymers in the world,
today announced the selection of Charleston, South Carolina as home to the
company’s new Global Export Hub to serve Braskem’s international customers.
Braskem’s New Global Export Hub
The
new Global Export Hub facility will provide packaging, warehousing and export
shipping services to support Braskem’s U.S. polypropylene (PP) production
facilities. With the design and development phase well underway, the new Global
Export Hub is expected to be completed by the third quarter of 2020 and will
have a capacity to support export shipments of up to 450 million pounds (204
Kilotons) of polypropylene and specialty polymers annually to Braskem customers
worldwide.
Braskem
is partnering with the Port of Charleston and warehouse provider Frontier
Logistics, which will construct, lease and provide services to Braskem under a
five-year agreement. Ahead of the facility’s completion, the company plans to
continue to leverage its existing international export capabilities out of Houston,
Texas, which will also be maintained following the launch of the new Charleston
Global Export Hub. The announcement of the new South Carolina facility
complements Braskem’s existing network of Global Export Hubs which include
facilities in North America, South America and Europe.
Mark
Nikolich, Braskem America CEO commented, “As the largest polyolefins
producer in the Americas and the leading producer of polypropylene in the
United States, Braskem is focused on reinvesting in its business and leadership
positions to support our clients worldwide. The build out of our new
Global Export Hub in South Carolina allows us to leverage our feedstock
advantaged, polymer production assets in the U.S Gulf Goast, Pennsylvania and West
Virginia, to best meet our international clients needs. With excellent access
to national rail and highway networks this important new logistics and
distribution facility in the South Carolina port region significantly enhances
Braskem America’s international export capability.”
The
Port of Charleston features daily express intermodal and merchandise rail
services and more than 20 ocean carriers delivering export cargo between Charleston
and more than 150 nations around the world. In 2019, the South Carolina Ports
Authority (SCPA) handled a record high 2.44 million twenty-foot equivalent container
units (TEUs). The new Charleston Global Export Hub facility is being developed
as Braskem works to complete Delta, Braskem’s new world-class polypropylene
production line in La Porte, Texas, which is nearing completion and is
scheduled for the launch of commercial production in the third quarter of 2020.
“The
polymer resins boom in the Gulf Coast is bringing new cargo to the
Southeast,” S.C. Ports Authority President and CEO Jim Newsome said.
“Braskem selected the Port of Charleston as their East Coast load port due
to our market’s unfettered resin export capacity, knowledge of the
petrochemical industry and efficiently run port terminals. We welcome Braskem
as a customer of S.C. Ports. Our strong business partnerships help to ensure
S.C. Ports will continue to grow above market.”
To
support additional shipping growth, the SCPA is currently undertaking a
Charleston Harbor Deepening Project allowing for the increased ability to fill
large container vessels handling up to 19,000 TEUs with heavy export cargo.
Upon completion of Charleston’s deepening, the Inner Harbor will offer 52 feet
of depth with a 54-feet deep Entrance Channel, making it home to the deepest
harbor on the U.S. East Coast. Additionally, the SCPA has embarked on the
development of the Hugh K. Leatherman Terminal; phase 1 will open in March 2021,
helping ensure capacity and access as volumes continue to grow.
The
construction of Braskem America’s new Global Export Hub in Charleston, under
its agreement with Frontier Logistics, will positively impact economic activity
in the region with approximately 150 development and construction workers
contracted by Frontier to fully design and construct the facility and 60
permanent employees employed by Frontier after startup. The total
economic impact that comes about through the SCPA yields a statewide employment
multiplier of 2.4. This implies that, on average, for every 10 jobs that are
directly supported by SCPA port operations or port users, an additional 14 jobs
are created elsewhere in South Carolina.
ABOUT
SOUTH CAROLINA PORTS AUTHORITY
South
Carolina Ports Authority (SCPA), established by the state’s General Assembly in
1942, owns and operates public seaport and intermodal facilities in Charleston,
Dillon, Georgetown and Greer. As an economic development engine for the state,
Port operations facilitate 225,000 statewide jobs and generate nearly $63.4
billion annual economic activity. SCPA is soon to be home to the deepest harbor
on the U.S. East Coast at 52 feet, and the Port is an industry leader in
delivering speed-to-market, seamless processes and flexibility to ensure
reliable operations, big ship handling, efficient market reach and
environmental responsibility. For more information on SCPA, please visit www.scspa.com.
ABOUT
BRASKEM
With
a global vision of the future oriented towards people and sustainability,
Braskem is committed to contributing to the value chain for strengthening the
Circular Economy. The petrochemical company’s almost 8,000 team members
dedicate themselves every day to improve people’s lives through sustainable
chemicals and plastics solutions. Braskem has an innovative DNA and a
comprehensive portfolio of plastic resins and chemical products for diverse
segments, such as food packaging, construction, manufacturing, automotive,
agribusiness, healthcare and hygiene, among others. With 41 industrial units in
Brazil, the United States, Mexico and Germany, and net revenue of R$52.3
billion (US$13.2 billion), Braskem exports its products to clients in more than
100 countries.
Braskem
America is an indirect wholly owned subsidiary of Braskem S.A. headquartered in
Philadelphia. The company is the leading producer of polypropylene in the
United States, with six production plants located in Texas, Pennsylvania and West
Virginia, an Innovation and Technology Center in Pittsburgh, and operations in Boston
focused on leveraging groundbreaking developments in biotechnology and advanced
materials. For more information, visit www.braskem.com/usa.
FORWARD
LOOKING STATEMENTS
This
press release contains projections and other forward-looking statements (within
the meaning of the Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended) regarding future events. These
statements reflect Braskem’s current beliefs and expectations with respect to
Braskem’s business, the economy and other future conditions and are based on
assumptions, are subject to risk and uncertainties and are subject to change at
any time. Actual events or results may differ materially from those
contained in such forward-looking statements. Important factors that could
cause actual results to differ materially from the forward-looking statements contained
herein include, without limitation: (i) the continuation of restrictions
related to the COVID -19 Pandemic or the continuing effects of the Pandemic;
(ii) the contraction or lack of growth in the market segments in which Braskem
competes and in which its products are sold (ii) unexpected delays in
commissioning, (iii) increased competition from imports or in the export
markets, (iv) inability to anticipate future market trends and the future needs
of Braskem’s customers, (v) the impact of natural disasters on Braskem’s La
Porte facility and its suppliers and (vi) other factors detailed in documents
Braskem files from time to time with the Securities and Exchange
Commission. Forward-looking statements in this release are made pursuant
to the safe harbor provisions contained in the Private Securities Litigation
Reform Act of 1995.
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