Petrobras and Abiquim Join Forces to Stimulate the National Chemical Sector

Petrobras And The Brazilian Chemical Industry Association (Abiquim) Recently Announced The Creation Of A Working Group Aimed At Revitalizing The Chemical Sector In The Country.

The initiative aims to develop an integrated plan for recovery and consolidation, seeking to address the bottlenecks faced by the Brazilian chemical industry. In this article, we will discuss the challenges faced by the sector, the measures proposed by the working group, and the importance of the partnership between Petrobras And Abiquim.

Challenges Facing The Chemical Sector In Brazil

The Brazilian chemical sector faces various challenges that hinder its competitiveness and growth capacity. One of the main obstacles is the high cost of raw materials, energy, and taxation, which represent about 80% of total costs. These high figures make it difficult to produce at a competitive cost and impact the sector’s ability to compete internationally.

Additionally, the Brazilian chemical industry faces the challenge of low utilization of installed capacity. In the first four months of 2023, production and sales volumes reached the lowest level in the past 17 years. The utilization rate of installed capacity was only 67%, a decrease of approximately 10 percentage points compared to the same period last year. This demonstrates the need for measures that encourage more efficient use of available resources and increase the sector’s productivity.

Measures Proposed By The Working Group

The working group formed by Petrobras and Abiquim aims to study and propose measures that contribute to the revitalization of the chemical sector in Brazil. Among the planned actions, the following stand out:

1. Integrated Recovery And Consolidation Plan: A comprehensive plan will be developed to identify the main difficulties faced by the sector, proposing solutions to boost the growth and competitiveness of the national chemical industry.
2. International Insertion Measures: Actions to promote the insertion of the Brazilian chemical sector in the international market will be analyzed. This includes identifying export opportunities, increasing participation in global value chains, and seeking favorable trade agreements.
3. Commercial Defense: Strategies for commercial defense will be evaluated to protect the national chemical sector from unfair market practices such as dumping and abusive subsidies. Measures such as the application of tariff barriers and actions with international bodies will be considered.
4. Tax Competitiveness: Measures to improve the tax competitiveness of the chemical sector in Brazil will be proposed. This involves analyzing current tax burdens, tax incentives, and possible reforms that could reduce costs for companies in the sector.

Partnership Between Petrobras And Abiquim

The partnership between Petrobras and Abiquim is of utmost importance for the development of the chemical sector in Brazil. Petrobras, as one of the leading companies in the energy and chemical sector in the country, has experience and expertise in the field, as well as resources and infrastructure that can contribute to the revitalization of the sector.

On the other hand, Abiquim, as a representative of the chemical industries in Brazil, has in-depth knowledge of the challenges faced by the sector and a strategic vision to drive its growth. The union of these two institutions will allow for the exchange of information, sharing of best practices, and the pursuit of joint solutions.

The creation of the working group between Petrobras and Abiquim represents an important step for the revitalization of the Brazilian chemical sector. The adoption of measures that promote competitiveness, international insertion, and improvements in tax burdens will contribute to the sustainable growth of the chemical industry in the country.