Materials

Braschem, the Brazilian petrochemicals manufacturer, is to invest around BRL500m (£157m) in a biopolymer production plant in the state of Rio Grande do Sul over the next three years.

Braschem, which makes polyethylene from sugar cane, expects the plant to have an annual capacity of 200,000 tonnes, and generate annual revenue of around £200m.

The company said it had identified 600,000 tonnes of potential demand for its biopolymer, which is suitable for blow-moulded and injection-moulded packaging.

It said firms are willing to pay a 20-30% premium for biopolymers over traditional resins.

Demand is particularly high in countries where "environmental issues are more prominent", such as Europe, the US and Japan, Braschem said.

Subject to approval by the firm's board of directors, investment will begin by the end of the year and the plant will come on line by 2010.