Braskem day international business unit presentation - roberto ramos

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Braskem day international business unit presentation - roberto ramos

  1. 1. International Business UnitRoberto Ramos
  2. 2. Agenda  International Business Unit  Ethylene XXI Project  Questions 2
  3. 3. Agenda  International Business Unit  Ethylene XXI Project  Questions 3
  4. 4. UNINT  Business  To continuously evaluate the opportunities in countries wherever the feedstock is available under competitive conditions for the construction of Greenfield projects and to support Braskem growing strategy by mergers and acquisitions 4
  5. 5. UNINT  Main Targets  Support Braskem long term growth strategy, towards new geographic frontiers  Be present in new places wherever competitive feedstock is available and/or it is possible privileged access to relevant markets  Focus on new projects in countries where Brazil’s geopolitical influence allows the leverage of the opportunities  Identify and prepare people with entrepreneurial skills and multicultural capability  Ensure that new projects shall be aligned with Braskem’s growing and sustainability strategies 5
  6. 6. Concentrations  Mexico  JV configuration: done (17 expatriates)  Feedstock supply agreement: done  Financial Advisor: done (Sumitomo)  Basic Engineering: starting in Oct/2010  Technology selection: virtually selected  EPC Alliance Model: Under negotiation  Financial Package: Preparation of information 6
  7. 7. Concentrations Venezuela  Propilsur: PP alternative location  Under study  Polimerica: Analyze alternatives in accessing new gas sources Peru  Project Office: Already established  Agenda with Petrobras and other suppliers of gas Bolivia  Government: Possible revision of the Hydrocarbon Law to attract new investments Colombia  New opportunities under monitoring 7
  8. 8. Structure Mexico Roberto Bischoff Projects Support Airton Beretta CEO UNINT V.P. Projects Support Bernardo Gradin Roberto Ramos Carlos Brenner Venezuela, Peru, Bolivia Sergio Thiesen 8
  9. 9. Operation Areas Expansion in Americas  Ensure regional positioning allowing the supply of the regional market from different production centers with more integrated approach and not restricted to Brazilian exports Greenfield Projects  Mexico – Peru – Bolivia – Venezuela Commercial Offices  Chile – USA – Argentina – Colombia – Singapore – Netherlands 9
  10. 10. Main Regional Front  Mexico: Ongoing Project: Second largest Latin American plastics market and relevant feedstock producer.  Peru: Boundary to Pacific coast with natural gas availability. Appropriate place for an Integrated Project. Relationship and feedstock solution under development.  Venezuela: Largest Latin American feedstock reserves. Natural player for petrochemical development. Economic, social and politic environment demand continuously evaluation.  Bolivia: Regional proximity with Brazilian and Argentinean markets, existing feedstock and production infrastructure to be developed. Networking under reconstruction. 10
  11. 11. Enlarge the Horizon Global Alliances and Partnership:Continuously evaluate the new growth opportunities abroad  Offices: Europe – Asia  Projects: Africa, Europe, Asia 11
  12. 12. Internationalization with Peopleware Maturity Background Capability Partner Relationship Government Relationship Family Social and Cultural Integration 12
  13. 13. Sustainability  Green Chemistry Technology  Consolidate Brazilian development  Projects abroad  Up Dated Environmental Criteria  Minimized CO2 emissions  Maximize recycling such as process water  Carry out all Greenfield Projects 13
  14. 14. Agenda  International Business Unit  Ethylene XXI Project  Questions 14
  15. 15. Polyethylene Market  Currently deficit above 1.1 MM ton (2010)  Estimated deficit in 2015 (project start-up): 1.7 MM ton  Annual Growing rate foreseen: 4.5 % (Period: 2010-2025 ) Polyethylene Mexican Market 4.0 3.4 3.5 3.5 3.2 3.3 3.0 3.1 2.8 2.9 3.0 2.6 2.7 2.5 2.3 MMton/year 2.5 2.2 2.0 1.8 1.9 2.7 2.0 1.7 1.7 1.6 1.7 2.4 2.5 2.6 1.5 1.6 2.1 2.2 2.3 1.8 1.9 2.0 1.5 1.5 1.7 1.3 1.4 1.1 1.1 1.1 1.2 1.1 1.0 1.0 1.1 1.1 0.5 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.5 0.5 0.6 0.7 0.7 0.8 0.8 0.4 0.5 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Supply Deficit Demand 15
  16. 16. Mexican Converters Industry  3,500 plastics converters  84% small and micro companies  More than 5 MM ton of plastics conversion, with 1.8 MM of Polyethylene  Main application: Packaging (48% market) Converters Profile Big Grandes Medium Médias 4% 12%Pequenas Small 24% Micros 60% Total: 3,500 Converters 16
  17. 17. The Project Ethane Ethane Cracker Ethylene 66,000 bpd 1,000 kTy PEMEX Gas (Basic Petchem) Gas 3 Polyethylene sites 1,000 kTy Polyethylene HDPE HDPE LDPE PEMEX (E & P) 17
  18. 18. The Project  Estimated investment: US$ 2.5 billion  Project Finance target: 70 % debt / 30% equity  Estimated Jobs during the construction: around 8,000  Estimated Jobs during operation: around 3,000 ( direct and indirect )  Localization: Coatzacoalcos (Veracruz State: Population: over 7 million) Video link 18
  19. 19. Video 19
  20. 20. Schedule  50 month from the PDP/FEED until to Start-Up Phase 2010 2011 2012 2013 2014 2015Preparation/SelectionPDP/FEEDProject Finance FID Start-up EPC 20
  21. 21. Competitiveness Factors  Competitive feedstock  State-of-the-art Ethylene and Polyethylene Technologies: focus on reduction of CO2 emissions  Labor cost among of the world’s most competitive (emphasis on detailing engineering and construction)  Alliance Model: reduction of total cost and assurance of the schedule  Braskem team with large project and Ethylene and Polyethylene operation background  Excellent timing to project implantation 21
  22. 22. Ethylene XXI Current Situation  US$ 138 MM of expenditures approved by shareholders until Dec/2011 – financial assistance done until Sept/2010 / Braskem team work already expatriated / technology: ongoing selection and acquisition and basic project phase  Market study already done and Polyethylene technologies defined  Cracker Technology: under definition  Alliance Model Agreement: under negotiations  Braskem and Idesa team mobilized for project management and follow-up  Starting of Basic Engineering: Oct/2010  Project Finance: under study supported by BNDES/BANCOMEXT 22
  23. 23. Agenda  International Business Unit  Ethylene XXI Project  Questions 23

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