Rio Polimeros plans further investment in PE capacity

Brazil’s Rio Polimeros has firmed up plans to expand its polyethylene (PE) capacity following the start-up of its $1.1bn ethylene and PE complex in Duque de Caxias, Rio de Janeiro state, next year.

The company, which is jointly controlled by Brazilian petrochemicals groups Suzano Petroquнmica and Unipar, plans to increase its PE capacity from 540 000 tonne/year to 700 000 tonne/year by 2007 or 2008, revealed Sergio Alves, Suzano Petroquimica’s executive director.

Rio Polimeros intends, eventually, to double its capacity to 1.08m tonne/year, although Alves stressed the timing of the next step depends on demand. Start-up of the ethylene complex has been delayed until March or April 2005 because of strike action and heavy rains. Alves said he expects full production to commence in August or September.

Suzano and Unipar each hold a 33% stake in Rio Polнmeros, with the remainder split between state-owned energy group Petrobras and Brazilian Development Bank BNDES. Suzano also owns a 50% stake in polypropylene (PP) producer Polibrasil, which has been forced to downscale its expansion plans because of insufficient feedstock availability. Alves said Polibrasil intends to raise its PP capacity in Maui, Sao Paulo, by 150 000 tonne/year to 450 000 tonne/year and has delayed its proposed expansion in Duque de Caxias.