Chemical Sector Investment Could Reach R$ 1 Billion by 2026 with Incentives
The Brazilian chemical industry is poised for significant growth, with potential investments totaling R$ 1 billion by 2026, according to the Brazilian Chemical Industry Association (Abiquim). Currently, R$ 759.3 million of this amount has already been committed by four companies in the sector: Braskem, Innova, Grupo OCQ, and Unipar.
These investments are part of the Special Regime for the Chemical Industry (Reiq Investimento), which offers tax benefits to petrochemical centers and chemical industries that agree to expand their production capacity or establish new facilities. Braskem, for instance, is considering an additional R$ 300 million investment in its industrial plants by 2026, as stated by the company's president. This would supplement the R$ 614 million already announced.
Innova plans to invest R$ 73.3 million in its operations by August and is looking to allocate an extra R$ 30 million to its plants in Manaus (AM) and Triunfo (RS) by 2026. The company aims to submit further investment projects to the Ministry of Development, Industry, Commerce, and Services (MDIC) in 2025, with the intention of utilizing the funds for growth in the upcoming year.
Of the R$ 759.3 million pledged, R$ 614 million is earmarked for seven projects by Braskem, which will enhance production capacity by approximately 139,000 tons across facilities in Bahia, Rio Grande do Sul, and Alagoas. These funds will be disbursed throughout 2025 and 2026.
Innova's planned investments of R$ 73.3 million will focus on three industrial plants located in Triunfo (RS) and Manaus (AM).
Grupo OCQ, which oversees 22 chemical companies, intends to inject R$ 15 million into its industrial facilities. The CEO emphasized the company's commitment to sustainable growth within the chemical sector, highlighting the shift towards new technologies and green chemistry, given Brazil's agricultural strengths.
Unipar has announced a R$ 57 million investment aimed at enhancing its production capabilities, particularly at its Santo André (SP) facility. The company has invested approximately R$ 1.8 billion in various projects over recent years, focusing on energy generation and modernization of its production facilities.
The announcements were made during a ceremony attended by the Vice President and Minister of Development, Industry, Commerce, and Services. The government's initiative is set to reduce tax burdens on the chemical industry, with current tax rates in Brazil reaching 34% of GDP, compared to 22% in China. The reduction aims to stimulate investment in the sector.
Here are the investments announced on January 17:
- Braskem: R$ 614 million;
- Innova: R$ 73.3 million;
- Unipar: R$ 57 million;
- Grupo OCQ: R$ 15 million.
Overall, 85% of Brazilian industries engage in circular economy practices, indicating a strong trend towards sustainable operations.
