June 16, 2025 –
Braskem Exits European Circular Venture to Refocus Core Business Strategy
In a strategic realignment shaking the polymer industry, Brazilian petrochemical leader Braskem has withdrawn from its Dutch circular economy joint venture Upsyde. The surprise move comes as multinational chemical corporations increasingly prioritize operational efficiency amid global economic headwinds.
AsiaMB industry analysts reveal the terminated partnership with Terra Circular had established a 20,000-ton mechanical recycling operation specializing in post-consumer plastic conversion for industrial applications. Despite achieving technical success in transforming hard-to-recycle plastics into pallets and construction materials, the venture reportedly struggled with Europe’s energy crisis and weakening market demand.
“While we remain committed to circular economy principles, we must concentrate resources where we hold competitive advantages,” stated Braskem’s Chief Sustainability Officer in an exclusive interview. The company confirmed redirection of investments toward its rapidly expanding biopolymer division, including new production facilities in Brazil and Thailand.
The withdrawal leaves Upsyde at a critical crossroads. Industry observers question whether the operation can secure alternative funding or continue independently without Braskem’s backing. The development underscores a growing industry dilemma – even technologically advanced recycling projects require favorable economics to survive absent strong regulatory support.
“This strategic retreat signals a broader shift,” commented Dr. Lisa Wang, AsiaMB’s senior polymer analyst. “Corporations are now prioritizing sustainability initiatives that deliver both environmental impact and clear financial returns.” The trend may accelerate calls for enhanced government incentives to maintain momentum in plastics circularity investments during economic downturns.
With operations spanning 40 plants globally, Braskem’s restructuring reflects multinational chemical firms’ increasing selectivity in sustainability commitments. The company maintains its position as Latin America’s largest thermoplastic resin producer, supplying markets across 70 countries despite the European pullback.