Braskem's CEO Carlos Fadigas said the current cane shortage in Brazil will not affect the company's projects to produce renewable plastics from fermented sugars, Agencia Estado reported.
Fadigas said that the chemical sector works with long-term feedstock supply contracts and that the current cane shortage is not alarming.
"The green polypropylene is a long-term project and won't be affected by a specific short-term problem," Fadigas said.
Cane production in Brazil, the world's largest grower of the plant, declined for the first time in 11 years last year as weather-ravaged crops and a lack of investments to renew fields dented output.
"We believe that the sector will soon recover and supply will return to normal," Fadigas said.
Braskem announced in 2010 the construction of a cane ethanol-based polypropylene plant after finalizing the conceptual phase of the project.
The project is valued at Reais 170 million ($86 million), most of which is to be contributed next year, Agencia Estado said.
The plant capacity is projected at 30,000 mt/year.
