Braskem to exit upsyde recycling JV to refocus on core chemicals business

NETHERLANDS – Brazilian polymers giant Braskem has announced it will divest its controlling stake in Upsyde, a Netherlands-based plastic recycling joint venture with Terra Circular, as it realigns its business strategy to focus on core chemicals and plastics production amid ongoing petrochemical market pressures.

Launched in 2022, Upsyde was envisioned as a pioneering facility capable of converting 23,000 tonnes/year of hard-to-recycle plastic waste into circular products using patented technology.

The facility remains under construction, and Braskem’s 2024 annual report, released in Q1 2025, still described the project as incomplete, with no official start-up timeline ever disclosed.

In a statement published via Braskem Idesa, its Mexican subsidiary, the company cited prolonged petrochemical downcycles, high European energy costs, and sluggish economic conditions as key reasons for its decision.

“We are redirecting all resources toward our core business: the production of chemicals and plastics,” the company said.

While financial details and exit timelines were not revealed, the move is widely interpreted as a cash conservation measure.

A Brazilian banking analyst familiar with Braskem’s portfolio noted that the divestment likely reflects the company’s urgent need to reduce debt and improve cash flow, rather than a strategic shift away from sustainability or recycling commitments.

Upsyde was pitched as a disruptive model for enhancing the circular economy, specifically by targeting mixed plastic waste often considered unsuitable for traditional recycling.

According to Braskem’s earlier statements, the project aimed to “make circular and resilient products 100% from highly recyclable plastic,” showcasing innovative approaches to complex waste streams.

Despite its recent market exit, Braskem has reiterated its firm commitment to its long-term sustainability agenda.

The company continues to advance key initiatives that align with global efforts to reduce environmental impact and promote circularity within the plastics and chemicals industry.

One of the cornerstone projects in this agenda is the expansion of biopolymer production capacity in Brazil.

This move strengthens Braskem’s position as a global leader in bio-based polyethylene, derived from renewable resources like sugarcane.

The expansion is aimed at meeting the growing demand for sustainable materials from both domestic and international markets.

In addition to scaling up operations in Brazil, Braskem is also moving forward with plans to establish a new biopolymer plant in Thailand.

This project represents a strategic step in diversifying the company’s geographic footprint and increasing its ability to supply renewable polymers to the Asia-Pacific region, one of the fastest-growing markets for sustainable materials.

Furthermore, Braskem remains actively engaged in partnerships focused on circularity and recycling.

These collaborations span various stages of the value chain and aim to increase the recovery, reuse, and reintegration of plastic waste into new production cycles.

Through these efforts, the company seeks to reduce its reliance on fossil-based feedstocks and contribute meaningfully to a more circular economy.

Overall, Braskem’s ongoing projects demonstrate that even amid market changes, the company remains deeply invested in driving sustainable innovation across its global operations.

The company emphasized that it continues to support low-carbon solutions and bio-based materials, even as it consolidates its resources.

This retrenchment highlights the challenging landscape for capital-intensive recycling ventures in today’s volatile energy and petrochemical markets.

Braskem’s withdrawal from Upsyde may signal a broader industry trend: prioritizing core profitability over green experimentation, especially in Europe, where energy costs and regulatory uncertainty are squeezing margins.

Meanwhile, Terra Circular’s next steps for Upsyde remain unclear, with no comment yet on whether the project will proceed independently or seek a new strategic partner.

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