Braskem, a market leader and pioneer in biopolymer production on an industrial scale, and Japanese trading company Sojitz have signed an agreement to establish a joint venture which will produce and market bio-MEG (monoethylene glycol) and bio-MPG (monopropylene glycol). Subject to the conclusion of technology development in 2022, the business plan includes the construction of three industrial units, with the startup of the first plant in 2025, taking advantage of market opportunities and feedstock availability. With the agreement signed, the establishment of the joint venture has been submitted to antitrust authorities for approval.
MEG is the raw material for the production of polyethylene terephthalate (PET), which has numerous applications and is an essential input in sectors such as textiles and packaging, especially beverage bottles. Currently, it is produced mainly from fossil-based raw materials such as naphtha, gas or coal, and its global market stands at around US$25 billion. On the other hand, monopropylene glycol (MPG) is a product that has a wide range of applications from unsaturated polyester resins (UPR), commonly used in the construction sector, to cosmetics.