BASF To Build Acrylic Complex In Brazil

Germany-based chemical company BASF SE will invest more than 500 million euros to build a production site for acrylic acid, butyl acrylate and superabsorbent polymers (SAP) in Camaçari, Bahia, Brazil. BASF will supply chemicals produced at the complex — which will be the first acrylic acid and SAP plant in South America — for products including superabsorbents for diapers, acrylic resins for coatings, textiles and adhesives, and products for civil construction. The investment is BASF's largest in its 100 years of doing business in South America.

"Due to the strong growth in Brazil, the time has come for this important investment," said Dr. Stefan Marcinowski, member of BASF's Board of Executive Directors. "It will further strengthen our position and underlines our confidence in the development of the South American market."

Construction of the new complex will begin this year and will employ around 1,000 people. The facility is expected to begin production in the fourth quarter of 2014, at which time 230 direct and 600 indirect jobs will be created. BASF selected Bahia based on the availability of polypropylene and utilities provided by Brazil-based chemical company Braskem S.A., BASF's strategic supplier in the project.

"The contract with BASF will bring benefits to the whole acrylic acid value chain, not only because of the production capacity of the project and the size of the investment, but also because of the best-in-class technology available," said Carlos Fadigas, president, Braskem. "Above this, the complex will generate new important investments to Camaçari, attracting new manufacturing companies to Bahia State."

"This project reinforces the importance of the region for BASF, ensuring the supply of our products to our customers in South America and contributing to the development of the country," said Dr. Alfred Hackenberger, president, BASF South America. "We expect the investment to bring a very positive impact of about $300 million per year on the trade balance of the country, thereof $200 million through reducing imports and $100 million through increasing exports."

BASF also has announced it will begin producing 2-ethyl-hexyl acrylate — a key raw material for the adhesives and special coating industries — at its existing site in São Paulo, Brazil. The plant, which will be the first in South America to produce the material, is expected to begin production in 2015 using acrylic acid produced at BASF's Bahia complex.