Braskem day basics petrochemicals unit presentation - manoel carnaúba

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Braskem day basics petrochemicals unit presentation - manoel carnaúba

  1. 1. Basic Petrochemicals UnitManoel Carnaúba
  2. 2. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 2
  3. 3. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 3
  4. 4. Did you know that... BRASKEM’S BASIC PETROCHEMICALS EVERY YEAR OUR PRODUCTION SHIPPING WE ARE THE RESPONDS FOR CARGOS 1 st CORRESPOND TO 70% 40 LARGER FREE NAPHTHA BUYERS OF THE OF THE WORLD TRAVELS AROUND THE BRAZILIAN GLOBE DEMAND Water treatment WHAT IF WE Power Generation Capacity WERE A Capacity 2.8 mm citizens CITY 1.6 mm citizens 4
  5. 5. Main priorities Be a world reference in HSE, Sustainability and Social Responsibility; Develop opportunities with clients to ensure operation at full capacity; Implement actions to optimize costs and be a world reference in our segment, with focus on reducing physical losses and energy consumption at industrial plants; Ensuring Energy Efficiency and competitive sources for acquisition; Develop leaders to meet growth projects, acquisitions and international challenges, identifying and preparing new generations for Greenfields projects. 5
  6. 6. Structure Isabel Figueiredo Commercial Andrea Jucá Renato Costa New Business Human Resources Development Hardi Schuck Supply Chain Vinícius Patel Andre Gohn Controlling and Energy Planning José Kelso Moraes Industrial - BABernardo Gradin Manoel Carnaúba CEO Vice-President Ademir Zaparoli Industrial - RS 6
  7. 7. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 7
  8. 8. Industrial overview BAHIA (BA) Camaçari, BA RIO GRANDE DO SUL (RS) Triunfo, RS 8
  9. 9. Industrial Overview – State of Bahia (BA) CONTINENTAL MONSANTO DUPONT FORD CHLOR ALKALI KORDSA EMCA ACRINOR PE-2 PVC DOW TDI DETEN PET CPL QUATTOR PE-3 ABB OXITENO P. FAFENBASF BRASKEM - BASIC PETROCHEMICALS ELEKEIROZ PE-1 COPENOR BRASKEM - BASIC PETROCHEMICALS BRASKEM 9 9
  10. 10. Industrial Overview – State of Bahia (BA)Aratu Terminal (BA):9 petrochemical exports and feedstock imports ARATU TERMINAL ULTRACARGO LIQUIDS Tanks 85 Storage capacity 192.600 m3 GASES Tanks 8 Liquid and Gas Terminal Storage capacity 44.600 m3 10
  11. 11. Industrial overview BAHIA (BA) Camaçari, BA RIO GRANDE DO SUL (RS) Triunfo, RS 11
  12. 12. Industrial Overview – State of Rio Grandedo Sul (RS) INNOVA OXITENO PP-1 DSM PP-2 / PE-5 PE-4 PE-6 BRASKEM - BASIC PETROCHEMICALS LANXESS BRASKEM - BASIC PETROCHEMICALS BRASKEM 12 12
  13. 13. Industrial Overview – State of Rio Grandedo Sul (RS) Santa Clara Terminal Privately-owned terminal extending for 4.6 miles, with 3 petrochemical docks and 2 ethanol tanks 13
  14. 14. Braskem +Main Goal Æ To ensure profitability during the petrochemical cycles It is a corporate program created to support the units in their efforts to improve quality, productivity in their operations and sustainability of results through the application of a set of integrated and consistent methodologies. Equipment Reliability 5 Elements of Braskem + Physical Organization Production Reliability Process Standardization Focused Improvement 14
  15. 15. Braskem + Lean Six SigmaSix Sigma Æ One of the tools used in Braskem + The Six Sigma culture is present in the Basic Petrochemicals Unit spread in several areas, mostly located in operational areas, where are the greatest opportunities for gains in safety, environmental improvements and economic return. Gains of Six Sigma (US$ MM) 30.0 21.1 23.6 9.6 * 5.2 21.1 2006 2007 2008 2009 2010 * Cumulative value until May/10 15
  16. 16. Process benchmarking Periodicity: Each 2 years 1 1 Benchmarking Participants Research Define Content D 5 2 Evaluation of Indicators (KPIs) Results /Presentation Design Data Structure Gaps Capture Plan Æ We use Benchmark Solomon for Olefins and 4 3 Utilities Verification, Analysis,Generation Data Collection of Results Transfer & Transfe Æ We use Phillip Towsend (PTAI) for Aromatics 16
  17. 17. Process benchmarking Benchmarking Analysis Olefins Net Margin (US$/t_HVC) 2009 INDEXES ANALYSIS HPP BA1 BA2 RS1 RS2 250Operation Rate - Olefins (%) 84.3 93.9 87.6 94.7 98.9 US$/t_HVC 200 150Energy Consumption (BTU/lb_HVC) 6454 5992 5556 4762 5360 100 50Maintenance Effectiveness (%RVA) 4.11 2.87 3.65 2.43 1.8 0 -50 0 5 10 15 20 25 30 35 40 45 50Maintenance Reliability Index (%) 4.37 2.75 4.27 3.05 2.50 Nº DE PARTICIPANTES - BASE NAFTAPhysical Losses (%) 1.11 0.65 0.81 0.65 0.45Yield of pyrolysis - Chemicals YIR (%) 105.4 104.9 106.7 100.7 99.1 Série1 BA1 BA2 RS1 RS2Chemicals Production Cost (US$/t) 775.4 726.8 808.0 680.0 690.0 Olefins Profitability (% RVA) * Indexes related to naphta feedstocks group 30 25 20 15 %VR 1º Quarter 3º Quarter 10 5 0 -5 0 5 10 15 20 25 30 35 40 45 50 2º Quarter 4º Quarter Nº DE PARTICIPANTES - BASE NAFTA Série1 BA1 BA2 RS1 RS2 17
  18. 18. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 18
  19. 19. Ethylene – Clients and marketsPolyethylenes Vinyls Ethylene Oxide StyrenesBraskem Braskem PVC (AL and BA) Oxiteno (BA) Unigel (BA) Braskem DCE (AL) Oxiteno (RS) Innova (RS)Bags PVC: Pipes and fittings Yarn and Polyester PS: disposablesYogurt packaging PVC: Toys PET PS: appliancesFilms for agriculture VAM: Paint PVA Cosmetics EPS: Expanded polystyrene OLEFINS AROMATICS UTILITIES ETHYLENE Annual Production Capacity: 2,532,000 t 19
  20. 20. Propylene – Clients and marketsPolypropylene Acrylonitrile Propylene Oxide Acrylic AcidMI – Braskem Unigel (BA) Dow Química (BA) Elekeiroz (BA)ME – NobleAppliances Acrylic paints; Flexible foams used in Latex paints, dispersionNonwovens for diapers, Yarns and fibers for clothing mattresses, furniture, paints.sanitary pads, clothes pillows etc. OLEFINS AROMATICS UTILITIES PROPYLENE Annual Production Capacity: 1,210,000 t 20
  21. 21. Butadiene – Clients and marketsPolybutadiene SBR SSBR NBR TR (TPR) Styrene Butadiene Solution SBR Acrylonitrile Thermoplastic Rubber Butadiene Rubber RubberLanxess Lanxess Lanxess Lanxess LanxessTires Tires Tires (high Aircraft material, fuel Flip-flopsShoes Shoes performance) hoses, medical gloves Shoes,Treadmills Treadmills Ring, seals and hoses Artefacts BUTADIENE Annual Production Capacity: 286,000 t 21
  22. 22. Benzene – Clients and markets Styrenes LAB Linear Alkyl Benzene Unigel (BA) Deten (BA) Innova (RS) PS: disposables Household detergents PS: appliances Industrial detergents EPS: expanded polystyrene Soap powder OLEFINS AROMATICS UTILITIES BENZENE Annual Production Capacity: 714,000 t 22
  23. 23. Toluene – Clients and markets Solvents TDI AB9 Toluene di-isocyanate Retail Market DOW (BA) Retail Market Paints and varnish Flexible foam (upholstery) Agrochemicals Thinners, turpentine Rigid foams Adhesives (Bumpers and sandals) OLEFINS AROMATICS UTILITIES TOLUENE Annual Production Capacity: 135,000 t 23
  24. 24. Gasoline + ETBE – Clients and markets VEHICLE GASOLINE Annual Production Capacity: 731,000 t GASOLINE ADDITIVE Export ETBE Annual Production Capacity: 372,000 t 24
  25. 25. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 25
  26. 26. Naphtha market forecast Global naphtha balance points to oversupply in the following years Naphtha crack spread will remain negative Naphtha petrochemical demand in the U.S. will decrease as a consequence of low- cost ethane Ethane will increase its share of the U.S. feedstock slate U.S. government regulations call for more ethanol in gasoline (bearish factor for naphtha demand) In Brazil, increasing ethanol demand and new Petrobras refineries will ensure naphtha supply. World Surplus (Deficit) Crack spread 20 10 15 8 4,1 6 10 3,4 2,0 4 5 1,0 0,2 0,0 2 US$/bbl MM t 0 0 -5 -1,0 -1,0 -2 -1,7 -1,7 -1,9 -4 -10 -6 -15 -8 -20 -8,2 -10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 2020 Source: Tecnon Parpinelli 26
  27. 27. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 27
  28. 28. A vision on sustainability Social and environmental responsibility is a core value among all leading global companies Company’s Core Business Reduce Reduce water emissions consumption Social Recycling responsibility Economic and Sustainable Financial Raw responsibility material 28
  29. 29. Sugar cane, Brazil and Braskem – a uniquecombination Sugar Cane Brazil 29
  30. 30. Sugar Cane – Competitive advantages withother materials Fossil-fuel energy used to MAKE the fuel (input) compared with the energy IN the fuel (output) , 9,3 1,4 , , 2,0 1,0 , Fossil-fuel Corn Sugar Beet Sugar Cane Input Output Sugar Cane has the highest energy productivity compared to other Ethanol sources New technologies expected to double productivity 30
  31. 31. Overview of the Ethanol Market Fundamentals and balance Growth in domestic demand Flex-fuel vehicles may account for 50% of the Brazilian vehicle fleet by 2011 Expansion of ethanol use in the chemical industry Sugarcane industry is facing a consolidation process, mainly through foreign capital Production is exceptionally dependent on weather conditions Ethanol availability is connected to sugar profitability Environmental legislation worldwide is a driver for increasing global ethanol consumption. Brazilian balance 80 20 70 60 15 MM de m³ MM de m³ 50 40 10 30 20 5 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Production Total consumption Surplus (right axis)Source: ANP and UNICA 31
  32. 32. Overview of the Ethanol Market Fundamentals and balance Growth in domestic demand • Flex-fuel vehicles may account for 50% of the Brazilian vehicle fleet by 2011 • Expansion of ethanol use in the chemical industry Sugarcane industry is facing a consolidation process, mainly through foreign capital Production is exceptionally dependent on weather conditions Ethanol availability is connected to sugar profitability Environmental legislation worldwide is a driver for increasing global ethanol consumption. Market share of the five biggest groups of producers 2004/05 004/05 2009/10 009/10 12% 27% % of the mills with external capital holdings t 2007/08 2010/11e 010/11e 22% 7%Source: Itaú BBA and UNICA 32
  33. 33. Market PlayersBraskem maintains commercial relations with several players Sugarcane crushing capacity (million tons) Ethanol production capacity (million liters) 4500 Future capacity (2015)100 80 3000 2300 60 1300 1500 40 860 1100 20 335 330 260 400 220 300 292 130 210 190 90 90 0 Players that maintain ethanol contracts with Braskem 33
  34. 34. Braskem – increased demand for ethanol Also the leader in renewable feedstocks Brazilian Ethanol Consumers 6.000 24.2% (million liters per year) 5.000 18.5% 17.9% 4.000 3.000 3.0 2.000 % 3.7% 1.000 2.0% 1.9% 1.9% 1.8% 1.7% 1.1% 1.0% 0.9% 0.8% 0 Gold Petro Euro Tux Florida Rodo nova petro As a result of Braskem’s growth in the alcohol- chemical sector, the company is increasingly present in the market as an ethanol consumer.Source: Sindicom and ANP 34
  35. 35. Green ethyleneAn alternative to ethylene derivatives SUSTAINABLE Ethanol Sugar Cane Green Ethylene Derivatives Ethylene oxide - MEG Styrene - PS Green Polyethylene 35
  36. 36. Agenda Business overview and main priorities Industrial overview Products and markets Naphtha Ethanol Questions 36

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