Oct. 28 (Bloomberg) -- Braskem SA, Latin America’s largest petrochemicals producer, will probably sign a contract with customers within a year for so-called green propylene it plans to produce, said Rui Chammas, an executive at its polymers unit.
Braskem, based in Sao Paulo, said yesterday it will invest $100 million in production of propylene, which is used to make polypropylene, a plastic used in food containers, water bottles and car bumpers. Braskem is making the plastic from sugar cane-based ethanol, according to an e-mailed statement.
The company plans to complete engineering studies in 2011 and have an output capacity of at least 30,000 metric tons of propylene a year by the second half of 2013, according to a regulatory filing.
Braskem may find customers in the automotive, packaging and electronics industries, Chammas, vice president of the unit, said today in an interview in Dusseldorf, Germany, declining to name any companies. Packaging for snacks could be a completely new application for the material, which reduces carbon dioxide emissions by about 2.3 tons per produced ton compared with traditional propylene, he said.
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