An update is given by Braskem on the impact of the COVID-19 pandemic on the company. The company also announced measures it is taking to tackle current challenges.
SSESSMENTS.COM was informed that Braskem has reduced staffing levels at its facilities to the minimum and cut by 50 percent the number of industrial workers and contractors at its sites. In response to lower demand and inventory effects in the petrochemical and plastics production chain, plant utilization rates in Brazil and the US were reduced.
Based on market demand and the potential opportunities for export to other regions (especially with the resumption of activities in Asia), the utilization rates will be adjusted.
Adjustments in Brazil so far included a reduction in ethylene production to about 65 percent of 3.6 million metric tons/year (MMt/y) total capacity. In the US, the polypropylene (PP) production reduced by the company to about 85 percent of the 1.6 MMt/y total capacity.
Measures to preserve liquidity and maintain financial strength include disbursement of a revolving credit facility of USD1 billion; reduction of administrative expenses by approximately 10 percent; reduction of planned investments for 2020 from USD721 million to USD600 million; and working capital optimizations.
