Styrolution suspends ABS project in Brazil

Styrolution, the global leader in styrenics, and Braskem, the largest producer of thermoplastic resins in America and a global leader in biopolymers, have agreed to suspend all project activities related to a future joint venture in Brazil. The decision was driven by Styrolution and was a result of the current adverse market conditions and uncertain market outlook.
 
In October 2013, both parties signed a memorandum of understanding (MOU) to investigate the potential formation of a joint venture to build and operate an acrylonitrile butadiene styrene (ABS) plant in Brazil. The proposed 100 kilo tonne (kt) plant was intended to supply specialty styrenics, ABS and styrene acrylonitrile (SAN) copolymers, to customers in Brazil and throughout South America. In the meantime, the market and business environment in South America and in specifically Brazil deteriorated significantly as compared to 2013. This opportunity could be revisited once market dynamics and future demand outlook have sustainably turned favourable again.