BASF to explore new investment in Brazil

14-03-2011: BASF is exploring opportunities for a new investment in Brazil. Projects under consideration include the production of acrylic acid, butyl acrylate and superabsorbent polymers (SAP). The company is conducting a feasibility study to evaluate the technical, commercial and economic viability of operating a world-scale complex in Brazil.

Decision on the plants to be built as well as on their capacities will be taken after the completion of the feasibility study, which is planned to be concluded in 2011. With this investment BASF is targeting at the growing South American market with special focus on Brazil.

“BASF is currently producing butylacrylate in Brazil, but at the moment there are no production plants for acrylic acid and superabsorbent polymers (SAP) in South America at all – all product is imported,” said Dr. Alfred Hackenberger, President of BASF for South America. “With these new investments we will be the first company to produce acrylic acid and SAP in South America, which will enable us to better serve our customers, further foster our position in these markets and open up additional opportunities for our businesses in South America,“ concludes Hackenberger.

To secure the competitiveness of the investment under consideration, BASF and Braskem S.A. have signed a Memorandum of Understanding (MoU). This MoU defines the long-term supply conditions for propylene, which is used as feedstock for the acrylic acid production, as well as the supply of utilities by Braskem to BASF.