Braskem asks for conditions to be more competitive

The President of Braskem petrochemicals, Carlos Fatigues, says welcome a little more devaluation of the Brazilian real to help the chemical industry to reduce the trade deficit that hit $ 32 billion last year, but think it takes more than the change to improve the competitiveness of the sector.
In charge of the largest petrochemical industry in the Americas and the second largest Brazilian exporter of industrial area, just behind the Embraer, Fatigue points a huge difference in price of energy and raw materials in relation to the United States, and calls for more government action in these areas too.
"This year more discussion on industrial policy will be interesting, you need to know what size and relevance of the industry Brazil wants," he said in an interview to the value on the sidelines of the World Economic Forum in Davos (Switzerland).
In its assessment, the global chemical industry landscape tends to be equal to 2013. The resumption of growth in the United States and reduction of fears about breaking in the euro area basically will keep the 3% annual increase in global demand.
In Brazil, the Executive binds the results the competitiveness of industry as a whole. "A third of national demand (of chemicals) is not met by the local industry," he says, attributing the problem to Exchange.
In 2013 the scale of manufactured goods had trade deficit record of $ 105 billion, of which one-third was in the chemical industry. In five years, the trade deficit accumulated in the manufacturing sector amounted to $ 370 billion, of which $ 123 billion by the chemical industry.
"I understand the Government's concern about the effect of exchange rate on inflation, but the best is needed, simply view the size of the trade deficit of the industrial sector," he said.
Fadigas compares data from the last ten years to illustrate the loss of competitiveness of industry: between 2003-13, the cost of labor in the country went up more than 100%, 78% and the inflation cambio left $ 3 per dollar for $ 2. "The cost of the industrial workforce has tripled in dollar, while the competitor (USA) that cost not even at the level of inflation since 2004," he said.
"Industrial labor costs tripled in dollar; already in the u.s. weren't even at the level of inflation, since 2004 "
The Executive recognizes that the Government started to act, lowering the price of energy and giving a certain exemption in the case of raw materials, but still doesn't solve everything. "The energy is still expensive compared to the USA", exemplified. The cheap American gas hit petrochemical twice. First, the price of energy. And second, plastic is made of gas. "In a sector where 1% makes a difference, the American raw material costs 75% less than that of Brazil".
With respect to logistics costs, Fatigues informs you that there is no port in the country where Braskem spends up to $ 20 million per year just paying a fine in the mooring of vessels, because of congestion. When the ship sails late, he will also pay a fine in the port of destination. "It's money that I could invest in research and development," he says.
Fadigas notes that the American industry is making a lot of money and putting strong pressure on the rest of the world, "hence why we're trying to develop new complexes".
The company has four fronts of action currently. First, the acquisition of a majority share of the Belgian Solvay in Solvay Indupa PVC maker, in an operation that evaluated the Indupa at $ 290 million, consolidating the company's position in Brazil and Argentina in PVC. Revenues, which amounted to r $ 40 billion in 2012, should be expanding too with this purchase.
In Mexico, the petrochemical complex in the State of Veracruz, in joint venture with the Mexican group Idesa, is at the peak of construction, with 10 thousand workers, 80 and even traffic guard cranes on site to guide the flow of trucks. The complex begins operations in mid-2015.
Two others are in planning, like the u.s. to stay close to the cheap American gas. And petrochemical complex in Rio de Janeiro, with the same idea of being close to landing the next production of the pre-salt. "This will leave our hands busy almost until the end of this decade," he said. In terms of resin, Braskem's production will increase 50%.
At the same time, Carlos Fatigues expects industrial policy definitions by the Government this year, noting that the participation of manufactures in GDP declined from 33 per cent in 1980, to 13% in 2012.