Braskem to delay construction of 2 plants

Thursday, December 4, 2008

The president of Brazilian petrochemical company Braskem (NYSE: BAK), Bernardo Gradin, announced there would be a delay in plans to construct two plants in association with Venezuela's state petrochemicals company Pequiven as a result of the international financial crisis, Venezuelan newspaper El Universal reported.

Braskem has opted to postpone some investments due to credit restrictions and forecast weak demand for thermoplastics next year. The projects are expected to be held up by at least nine months.

"Financing is necessary for moving forward with a project and the liquidity crisis has altered some schedules," Gradin said, referring to the plans the company has in Venezuela.

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In February Braskem announced the venture with Pequiven to construct a polypropylene plant and a polyethylene plant in the José petrochemical complex in Venezuela's northeastern Anzoátegui state, with an investment of US$3.5bn.