BRKM5

Braskem, issuer of the BRKM3, BRKM5 and BRKM6 shares traded on B3, was created in 2002 from the merger of Copene with five other petrochemical companies, after Novonor S.A. (formerly Odebrecht S.A.), in partnership with Grupo Mariani, acquired control of Copene. This move consolidated significant assets in the Camaçari Petrochemical Complex in Bahia and marked the beginning of a trajectory of expansion and consolidation of the chemical and petrochemical industry in Brazil. Between 2006 and 2010, the company strengthened its presence by integrating the Triunfo Complex in Rio Grande do Sul and acquiring Quattor, which held assets in São Paulo and Rio de Janeiro, expanding industrial scale and reach in the country. This trajectory allowed Braskem to reach a new competitive level to operate in international markets.

From a business model perspective, Braskem is described as the largest plastics producer in the Americas by installed capacity, operating in the first and second generations of the petrochemical industry. In Brazil and Mexico, its operations are integrated, ranging from the production of basic chemicals (olefins and aromatics) to thermoplastic resins such as polyethylene (PE), polypropylene (PP), PVC and caustic soda. In the United States and Europe, the company operates mainly in the second generation, purchasing propylene from third parties to produce PP and ultra-high molecular weight polyethylene. The products manufactured are essential inputs for various industrial sectors, serving value chains in food packaging, furniture, industrial and automotive components, as well as paints and coatings.

Braskem and its subsidiaries’ activities are organized into three major operating segments: Brazil, USA and Europe, and Mexico. The Brazil Segment, which accounts for 69% of the consolidated net revenue of reportable segments (R$ 54,844 million in 2024), integrates olefins, polyolefins, vinyls and specialties operations. In this segment, the company produces first-generation chemicals such as ethylene, propylene, butadiene, benzene, paraxylene, orthoxylene and cumene, as well as selling utilities such as steam, electricity and hydrogen to industrial customers. The polyolefin units in the country manufacture different types of PE (low, linear low, high density, ultra-high molecular weight, EVA), PP, I’m green™ bio-based PE and post-consumer recycled resins. In its vinyls operations, Braskem produces PVC and caustic soda, with units in Bahia and Alagoas, and also operates chlor-alkali plants and other derivatives such as hydrogen and sodium hypochlorite.

The USA and Europe Segment accounts for about 24% of the consolidated net revenue of segments (R$ 19,444 million in 2024) and is focused on the production of polypropylene and ultra-high molecular weight polyethylene (UTEC®). Plants are located in Texas, Pennsylvania and West Virginia in the United States, and in Wesseling and Schkopau in Germany, with combined annual capacity of 2,646 thousand tons. The production process uses Spheripol and Unipol technologies, with propylene fully purchased from third parties. The Mexico Segment, responsible for approximately 6% of the consolidated net revenue of segments (R$ 5,148 million), operates the Braskem Idesa petrochemical complex in Veracruz, with an ethane cracker integrated with HDPE and LDPE units, totaling annual capacity of 1,050 thousand tons of polyethylene. In 2024, 57.2% of the company’s net revenue was generated in Brazil and 42.8% in international operations, highlighting its strong overseas presence.

Braskem also stands out for its portfolio of renewable products and its activities in biopolymers. In 2010, it began producing green ethylene in Triunfo (RS), from sugarcane ethanol, with capacity that was expanded and, after a project completed in 2023 and industrial tests in 2025, reached 275 thousand tons per year of green ethylene capacity, used in the production of I’m green™ bio-based PE. The company entered into agreements with Lummus Technology for joint development and licensing of green ethylene technology, and created the Sustainea joint venture with Sojitz to develop bioMEG and bioMPG, plant-based chemical feedstocks aimed at sectors such as PET packaging, textiles, cosmetics and personal care. In 2023, it also entered into a joint venture with SCG Chemicals, through Thai Polyethylene, for engineering of a green ethylene dehydration plant in Thailand, a project whose FEED was awarded to Toyo Engineering, with completion expected in the second half of 2025.

From a commercial standpoint, Braskem operates with a global base of 2,975 customers, without material concentration in a single buyer, as in 2024 there was no customer responsible for 10% or more of total net revenue. Its sales network includes commercial offices in the Americas, Europe and Asia, with teams dedicated to segments and regional markets. The polymers and chemicals produced supply segments such as food packaging, hygiene and cleaning, construction, automotive, household appliances, textiles, paints and fuels, among others. The company also sells chemical specialties such as isoprene, DCPD, piperylene, polyisobutene, hydrocarbon resins (Unilene®), various solvents and fuels, as well as additives such as ETBE and MTBE, expanding the range of inputs offered to industry.

On the operational and innovation front, Braskem develops projects to improve technologies, decarbonize processes, advance in biotechnology and recycling, and create new solutions for customers. In 2024, the company employed 370 innovation and technology professionals, distributed across research centers in Pittsburgh and Lexington in the United States, Wesseling in Germany, Coatzacoalcos in Mexico, and the cities of Triunfo, Campinas and São Paulo in Brazil. The focus on innovation translates into portfolio renewal, with 6% of current products launched in the last five years, and into competitiveness and efficiency gains at plants, which generally operate with utilization rates above market averages in segments such as PP in the USA and PE in Mexico.

As a large petrochemical company, Braskem is subject to strict environmental regulation in all countries where it operates. In Brazil, it is subject to the Environmental Crimes Law and may face fines, suspension of activities and other penalties in the event of violations, in addition to having to maintain a broad set of federal, state and municipal environmental licenses to operate in complexes such as Camaçari (BA), Triunfo (RS), Capuava, Cubatão, Santo André, Mauá and Paulínia (SP), Duque de Caxias (RJ) and units in Alagoas. The company maintains management and internal audit systems for timely renewal of licenses, as well as integrated operations for effluent treatment and waste disposal, using incineration, co-processing in cement kilns and landfills. In 2024, it reported recycling or reusing 54.2% of the solid waste generated and 19% of the water used in its production processes, and carried out the decommissioning of facilities based on mercury-cell technology in Bahia in accordance with applicable environmental regulations. In the United States, its operations are regulated by laws such as the Clean Air Act, Clean Water Act, TSCA, CERCLA and RCRA, requiring specific permits and compliance for emissions, waste and industrial effluents.

For investors in BRKM3, BRKM5 or BRKM6 shares on B3, Braskem presents itself as a basic materials company with strong exposure to the global petrochemical chain, a diversified portfolio of resins and chemicals, relevant geographic presence in the Americas and Europe, and initiatives in renewable-based products and recycling. Its integrated structure in Brazil and Mexico, combined with PP assets in the United States and Europe, positions the company at different links in the plastics and chemicals value chain, with risks and opportunities associated with commodity cycles, industrial demand, environmental regulation and the transition to more sustainable feedstocks.