Vinmar signs $1 billion chemical marketing agreement with Rio Polimeros
Exclusive sales agreement for new polyethylene plant in Brazil
Vinmar (Houston), a leading independent chemical marketing and distribution company, has signed an exclusive long term "off-take" agreement with Rio Polimeros to market approximately $1 billion in polyethylene from the company's petrochemical complex now under construction at Duque de Caxias in the state of Rio de Janeiro, Brazil.
The off-take agreement gives Vinmar exclusive rights to market products from the project globally, except for the domestic Brazilian market.
The 540,000-metric-ton-a-year polyethylene plant is expected to start up in late 2003 or early 2004.
Backing for the Rio Polimeros consortium includes the major Brazilian operating companies of Petrobras, Suzano and Unipar. Financing is being provided by the Export-Import Bank of the United States and the Italian export agency, SACE. Additional funding, through direct loans, comes from the Development Bank of Brazil (BNDES).
"We have worked closely with the Rio Polimeros consortium and the export credit agencies over the past two years," said Vijay Goradia, chairman of Vinmar. "This project has an excellent potential return to the Brazilian economy and we welcome this opportunity to help add to the value of the project. The off-take agreement essentially guarantees that a marketing program is in effect from the day production starts. The international scope of Vinmar will bring buyers to Rio Polimeros from around the world." The Rio Polimeros project is the first natural gas-based cracker to be built in Brazil, providing additional value for that country's natural gas production.
Founded in 1978 by Vijay Goradia, Vinmar has grown to become a billion-dollar company, one of the world's leading independent chemicals marketing organizations. Headquartered in Houston, the company's global marketing, distribution and project development organization has 27 offices in 17 countries. The company is a recipient of the U.S. President's Export Award for consistent growth in developing exports, especially in emerging markets.
Source: Vinmar