Borealis, 65 per cent of which is owned by Abu Dhabi’s International Petroleum Investment Company, has announced it will invest   R$18 million ($9.15 million) in the acquisition of a new extrusion line to enlarge its Itatiba (SP) plant in Brazil.

Borealis has two production units in Brazil located in Itatiba (SP) and Triunfo (RS). The investment, which will serve the automotive and appliances markets, will increase the polypropylene (PP) compounding capacity of the plant by 11,000 tonnes per year and is due for completion in mid-2008.
According to José Sarmento, managing director of the company, “This investment reflects the commitment of Borealis to the Brazilian market, and reflects our responsiveness to meet our customer’s increasing requests for PP compounds in the automotive sector. In addition to serving the Brazilian market, we aim to enhance our service to customers in Argentina”.
Rui Chammas, PP business director of Braskem, Borealis’ joint venture partner in Brazil, commented that Braskem considered the segments as important  not only in terms of product volume but also for the high level of technical requirements, which opened new perspectives to the innovation developments carried out at the Technological Centre in Triunfo.
“Therefore, we are pleased with the investment in Itatiba as it will boost our R&D activities,” he said.