Braskem, Brazil’s leading petrochemical producer, has quietly placed three of its five North American polypropylene (PP) facilities on the block, marking a dramatic shift in its global footprint. According to reports, the company is in advanced discussions with Unipar Carbocloro S.A. (Unipar) for the potential sale of its La Porte (TX), Oyster Creek (TX) and Seadrift (TX) plants for up to $1 billion.
The move comes as Braskem seeks to shore up liquidity and streamline its operations following years of heavy debt incurred during a high-stakes turnaround from its Lava Jato–related bankruptcy restructuring. While Braskem has emphasized that its core strategy remains focused on Brazil and Mexico, the proposed divestment of U.S. PP assets signals a readiness to exit mature, lower-growth markets in favor of higher-return investments.
In parallel with Unipar’s approach, Brazilian financial press outlet Brazil Journal first revealed that Braskem had formally offered its U.S. assets for sale, stating that the company engaged investment banks to solicit interest from multiple bidders. Although negotiations with Unipar are the furthest along, sources say private equity funds and regional industrial groups also submitted non-binding bids.
Analysts highlight several drivers behind Braskem’s decision:
🔵 Debt Reduction: Braskem’s gross debt remains elevated, even after asset sales and a rights offering. Monetizing stable, cash-generating U.S. plants would free up capital to accelerate deleveraging and fund strategic projects in its ethylene and PVC complexes closer to home.
🔵 Portfolio Focus: North American PP margins have been pressured by recent U.S. tariff uncertainty and overcapacity. By divesting these three mature Spheripol- and Unipol PP-based facilities, Braskem can redeploy resources toward faster-growing markets—such as advanced recycling and biopolymers—where it holds leading market positions.
🔵 Operational Simplification: Managing five separate U.S. sites—three in Texas, one in Pennsylvania and one in West Virginia—has stretched Braskem’s regional management bandwidth. A leaner footprint would streamline logistics, procurement and regulatory compliance.
Regional stakeholders note, however, that the proposed sale of La Porte and Oyster Creek alongside the smaller Seadrift facility will still leave Braskem with two U.S. plants—Marcus Hook (PA) and Neal (WV)—that collectively account for 590 ktpa of PP capacity.
Unipar, the leading contender to acquire the assets, would gain immediate scale in North American PP and bolster its feedstock integration strategy. Sources say Unipar’s non-binding 2023 bid for Braskem equity laid the groundwork for intensified talks on the U.S. plants this summer.
Braskem’s management insists that no binding agreement has been signed and that talks remain subject to due diligence and regulatory approvals. Nevertheless, the near-consummation of this transaction underscores a broader inflection point for Brazil’s petrochemical champion: a pivot away from legacy assets in search of a leaner, higher-growth future.
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