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Braskem Faces Ongoing Logistical Challenges Post-Floods in Rio Grande do Sul

Braskem Faces Ongoing Logistical Challenges Post-Floods in Rio Grande do Sul
  • PublishedJuly 4, 2024

RIO DE JANEIRO (ICIS)–Braskem, Brazil’s leading polymers producer, continues to grapple with logistical challenges at its Triunfo facilities in flood-affected Rio Grande do Sul. Severe flooding in May forced a shutdown of the Triunfo complex, which has not yet returned to full operation.

Despite initial hopes of resuming normal activities by early June, a letter to customers dated 28 June reveals that logistical issues persist. Damaged roads and disrupted port operations have hampered the supply chain, particularly affecting inputs for ethanol and green ethylene-based products.

Braskem assured that there is no immediate risk of supply interruption and is actively seeking alternatives to stabilize availability. Most roads in the state have reopened, albeit at reduced capacity, and the Port of Porto Alegre, near the Triunfo hub, resumed operations in mid-June.

The Triunfo complex is vital for Brazil’s polymers industry, contributing significantly to the country’s polyethylene (PE) and polypropylene (PP) production. Braskem, the sole domestic producer, commands a market share of 56% for PE and 70% for PP. Triunfo alone accounts for 37% of Brazil’s PP capacity and 40% of its PE capacity. The facility can produce 740,000 tonnes/year of PP, 550,000 tonnes/year of HDPE, 385,000 tonnes/year of LDPE, and 300,000 tonnes/year of LLDPE.

Efforts are ongoing to overcome these logistical setbacks and restore full operational capacity.

Written By
Team Gabruu