Suzano Petroquimica@http://www.suzanopetroquimica.com.br/en/sobre.html@@

Suzano Petroquimica is the Latin American leader in the production of polypropylene resins and the 2nd largest producer of thermoplastic resins in Brazil.

The Company has a production capacity of
625 thousand tons/year of polypropylene distributed within its three facilities located in Maua (State of Sao Paulo), Duque de Caxias (State of Rio de Janeiro) and Camacari (State of Bahia).

The Company
fs total production capacity will increase by 250 thousand tons/ year up to 2008 with the expansion of Maua and Duque de Caxias Units. These production capacity expansions will sustain itfs leadership position in the polypropylene business in Latin America and will turn the Company into the second largest thermoplastic resins producer in the region.

In addition, Suzano Petroquimica is
a joint controlling shareholder of Riopol and Politeno, polyethylene producers, and Petroflex, synthetic elastomer producer; both products are raw materials for the converters, as the polypropylene (more details at SuzanoLs Groups section).

Our strategic focus is the polyethylene and polypropylene market. Considering that the Brazilian demand for these products has historically presented a high growth rate and that the per capita consumption in Brazil is still much lower than other under development countries, we believe there is an excellent growth opportunity for those business segments in Brazil. We prioritize investments in the polyethylene and polypropylene production in the Southeast Region of Brazil, major consumer market for these products, accounting for more than 60% of all the country
fs consumption.

On September 01, 2005, Suzano Petroquimica accomplished an important strategic objective becoming an operational company through the takeover of Polibrasil, the polypropylene producer whose control Suzano Petroquimica used to share with Basell. As a result, Suzano Petroquimica has dramatically enhanced its activities in terms of size and relevance, which also enabled a significant simplification of its corporate structure.

2005/9/1 @Polibrasil ‚ðBasell ‚©‚甃Žû @@@2005/11/30@Riopol starts

2005/12/1 Restructuring

Current Structure After Restructuring

Polipropileno S.A..

Suzano Petroqui'micafs Businesses

Since 1974, the actions of Suzano
fs companies in the petrochemical industry have always been pioneering. For Suzano Petroqui'mica, technological know-how and innovation walk hand in hand.

@Polibrasil @2005/9/1”ƒŽû

First company to manufacture polypropylene in Latin America, is the segmentfs eading company in the region. Its three industrial units - Maua', State of Sa~o Paulo, Duque de Caxias, State of Rio de Janeiro and Camac,ari, State of Bahia - have a total installed capacity of 625 thousand ton/year. The three polypropylene plants are certified by ISO 9000, ISO 14001 and OHSAS 18001 standards.

Facilities
(Polypropylene Resins)
Installed Capacity
(thousand ton/year)
after expansion
(thousand ton/year)

Duque de Caxias

200.0

300.0

Maua'

300.0

450.0

Camac,ari

125.0

125.0

Total

625.0

875.0

The company approved an of its Duque de Caxias complex, from 200.0 thousand tons to 300.0 thousand tons, and of its Maua' complex, from 300.0 thousand tons to 450.0 thousand tons. These investments are scheduled for the period from 2005 to 2008.

Founded in 1978,
Suzano Petroqui'mica holds 100% of Polibrasil shares


2006/7/11@PRNewswire-FirstCall via COMTEX/

Suzano Petroquimica Concludes the First Phase of Its Polypropylene Capacity Expansion Project

Complying with Suzano Petroquimica's polypropylene capacity expansion schedule, the first phase of the project was concluded today. It allowed
Maua's production capacity to increase by 60 thousand tons per year, reaching a nameplate capacity of 360 thousand tons per year. Maua's industrial site now has the biggest production capacity in a single site in Latin America.

The second phase of Maua's capacity expansion, which will add
another 90 thousand tons per year, is estimated to be finished by the second quarter of 2008. Additionally, Duque de Caxias' facility expansion, in 100 thousand tons per year, is expected to be ready by the second quarter of 2007, together with Duque de Caxias' sea terminal.

Petroquimica will consolidate its position with a capacity of
875 thousand tons per year.

@Riopol@@@@@@@@@@@@@@Riopol starts

Riopol was created in 1996 to implement a grand project, the Rio de Janeiro Gas-Chemical Production Complex, in the vicinity of the Duque de Caxias refinery - Reduc, owned by Petrobras. The Complex was inaugurated on 23 June, 2005 and is comprised of two units - an ethane and propane pyrolysis unit, with installed capacity of 520 thousand ton/year of ethylene, and another unit producing high density (HDPE) and low density (LLDPE) polyethylene, with installed capacity of 540thousand ton/year.

Rio Poli'meros' Pyrolysis Unit has an annual production capacity of 520.0 thousand tons of ethylene and 75.0 thousand tons of propylene. Additionally, this unit has an annual production capacity of 5.0 thousand tons of hydrogen and 33.0 thousand tons of pyrolysis gasoline.

The Polymerization unit, on the other hand, has two independent production lines with an annual capacity of
270.0 thousand tons of polyethylenes each, for a total annual capacity of 540.0 thousand tons of polyethylene. This unit is of the swing type, capable of producing LLDPE and HDPE. This flexibility allows for adapting the product mix to the needs of the market.

The Rio de Janeiro Gas-Chemical Production Complex is the first Brazilian petrochemical complex to use natural gas fractions as petrochemical raw-material to manufacture ethylene and the first integrated petrochemical project in Brazil, gathering production units of ethylene and polyethylene.

The shareholders of Riopol are
Suzano Petroqui'mica (33,33%), Unipar (33,33%), Petroquisa (16,66%) and BNDESPAR (16,66%).

Riopol is the result of a joint venture between us, Unipar, Petrobras (through Petroquisa) and BNDES Participac,o~es S.A.-BNDESPAR (''BNDESPAR''), and represents an investment of approximately US$ 1.08 billion. We hold approximately 33.3% of its total and voting capital being, together with Unipar, the largest shareholders. Petroquisa and BNDESPAR hold, each, approximately 16.6% of the total and voting capital of Riopol, and, in case BNDESPAR wants to sell its participation, Petroquisa has the right of first refusal, under specific circumstances.

@PQU

@Petroflex@@Duque de Caxias (RJ), Triunfo (RS) e Cabo (PE)

Largest producer in Latin America, and sixth in the world, Petroflex holds today approximately 80% of market share in the Brazilian elastomers market. It has 3 industrial units: Duque de Caxias, State of Rio de Janeiro; Triunfo, State of Rio Grande do Sul and Cabo, State of Pernambuco, all certified by ISO 9001, ISO 14001 and OHSAS 18001 standards, amounting to a total installed capacity of 410 thousand ton/year. Petroflex exports approximately 30% of its production to over 70 countries.

Petroflex offers more than 70 types of elastomers produced with raw materials from oil byproducts. Its products include synthetic ESBR, SSBR and BR rubbers, thermoplastic TR rubber, synthetic latex, PBLH and nitrilic NBR rubbers.

Units Installed Capacity
(thousand tons/year)

Duque de Caxias

210.0

Triunfo

76.0

Cabo

125.0

Total

411.0

Created by Petrobras in 1962, Petroflex was the first petrochemical company to be privatized in Brazil, in 1992, as part of the National Privatization Program (PND). Petroflex is controlled by Suzano Petroqui'mica, Braskem and Unipar, which hold, together, 50.3% of the total capital.

@Politeno

Located in the Camac,ari Petrochemical Complex, State of Bahia, Politeno is one of the most important producers of polyethylene in Latin America.Its units, located beside the raw material central (Braskem), have installed capacity of 360 thousand ton/year and are certified by ISO 9001 and IISO14001 standards.

Plant Installed Capacity
(thousand ton/year)

LDPE/EVA

150.0

LLDPE/PEAD

210.0

Total

360.0


Founded in 1974, Politeno is controlled by four shareholders: Suzano Petroqui'mica, Braskem and the Japanese Sumitomo and Itochu. For two subsequent years - 2000 and 2001 -, the Company was a finalist in the National Quality Award (PNQ), which was finally conquered in 2002. This award is considered the most important recognition of the efforts in pursuing excellence in quality in Brazil.

Companhia Suzano de Papel e Celulose@@@@@@@ @35%
Conepar--- Companhia Nordeste de Participacoes
@@ 35%
Sumitomo Chemical
@@@@@@@@@@@@@@@@@@@ 20%
Itochu Corporation
@@@@@@@@@@@@@@@@@@@@10%

* Conepar
‚ÍBraskemŽq‰ïŽÐ

@Prodome Qui'mica e Farmace^utica Ltda (PQF)

Ending a 15-year relationship, German pharmaceutical company Merck & Co Inc has acquired control of Brazilian health products manufacturer Prodome Qui'mica e Farmace^utica Ltda (PQF) from local company Ache' Laborato'rios Farmace^uticos SA (ALF) and minority shareholder Gian Enrico Mantegazza for an undisclosed amount.

@Polipropileno S.A..

The Company's principal activity is to produce and manufacture propylene oxide, propylene glycol, polypropylene and other petrochemical by-products.


2005/6/20
http://www.suzanopetroquimica.com.br/en/downloads/C30D97F9-2555-8A65-8DD414E024B906C1.download.pdf

Suzano Petroquimica S.A. (gSuzano Petroquimicah or gCompanyh) , and Basell International Holdings BV (gBasellh), announce that today they have reached an agreement in principle for the sale of the entire shareholding interest of Basell at Polibrasil Participacoes S.A. to Suzano Petroquimica, that, as a result, will own 100% of such company and, indirectly, 98.1% of Polibrasil Resinas S.A. (gPolibrasilh), the Latin-American leader in polypropylene production.
According to the agreement, Suzano Petroquimica will acquire 100% of the shares of Basell Poliolefinas Ltda. (
gBasell Brasilh), which has only one asset that corresponds to its 50% stake of Polibrasil Participacoes S.A., controlling shareholder of Polipropileno S.A., with 98.1% of its share capital, which has total control of Polibrasil, an operating company with total production capacity of 625 kton/year of polypropylene and 25 kton/year of compound polypropylene. The agreement also encompasses the simultaneous sale to Basell of the totality of the polypropylene compounding business of Polibrasil.
The amount to be paid for 100% of Basell Brazil
fs, net of polypropylene compounding business, is US$ 240 million.
The closing of the transaction, expected to occur during the third quarter of 2005, is subject to the conclusion and execution of the definitive agreements of the transaction, among other conditions precedent and usual adjustments in this type of transaction.
For Suzano Petroquimica this is a historical milestone, as it represents a fundamental qualitative upgrade: the Company will cease to be only an investor and joint controller to become a company with integrated strategic and operating functions. At the same time, it confirms its key role as consolidating agent of the petrochemical sector focused on the Southeast region of Brazil. Through the total shareholding control of Polibrasil, Suzano Petroquimica will become the third largest producer of thermoplastic resins in Latin America and the largest producer of polypropylene in the region.
After the closing of the transaction Suzano Petroquimica will implement a corporate restructuring, aiming at simplifying its structure and formally becoming an operating company. By this means Suzano Petroquimica confirms its strategic commitment both to the capital markets and to value creation to shareholders. As soon as the basic framework of this organizational restructuring is defined the Company will inform the market accordingly, in compliance with the applicable regulations.
The solid relationship between Suzano Petroquimica, Basell and their shareholders, carefully and respectfully built over the last years, was crucial for the implementation of this landmark transaction and will continue to be essential for the sustainable development of both companies.


2005/9/1

http://www.suzanopetroquimica.com.br/en/downloads/125A6B83-2555-8A65-8F43AABDBD5C63FA.download.pdf

Suzano Petroquimica S.A. (gSuzano Petroquimicah or the gCompanyh) announces that it has concluded the acquisition of the entire control of Polibrasil Resinas S.A. (gPolibrasilh). The financial settlement and the property transfer , amounting to US$ 276.8 million, were finalized today.
The transaction included the simultaneous
sale to Basell International Holdings BV (gBasellh) of Norcom Compostos Termoplasticos do Nordeste S.A., to which the whole business of polypropylene compounds, previously owned by Polibrasil, was transferred to for the amount of US$ 23.0 million, resulting in a net disbursement of US$ 253.8 million for the transaction.
Additionally, Suzano Petroquimica will implement a restructuring to simplify its corporate structure and turn itself into an operational company, accomplishing its commitment to the market.
As a result of this transaction, Suzano Petroquimica becomes the Latin American leader in the production of polypropylene, with
total production capacity of 625 thousand tons per year, reaching 875 thousand tons per year after the implementation of the approved expansion project, and the second largest Brazilian producer of thermoplastic resins, with consolidated net revenues of R$ 1.719 millions for the period from Julyf04 to Junef05.

Corporate Restructuring
The corporate restructuring will evolve public tender offers to the delisting of Polipropileno S.A. and Polipropileno Participacoes S.A. and the incorporation, by Suzano Petroquimica, of Suzano Quimica Ltda., Polibrasil Participacoes S.A., Suzano Poliolefinas Ltda. (previously Basell Brasil Poliolefinas Ltda.) Polipropileno S.A and Polibrasil Resinas S.A., besides the incorporation of Polipropileno Participacoes S.A. by SPQ Investimentos e Participacoes Ltda. The restructuring will allow the use of the goodwill generated by the acquisition of Polibrasil valued in excess of R$ 400 million, and will be concluded until the end of 2005.

By turning itself into an operational company, Suzano Petroquimica will take a definitive step towards a new qualitative level, integrating its strategic management to the operational management, besides creating a simpler and more transparent corporate structure, as indicated above.


2005/12/1@Suzano Petroquimica

Suzano Petroquimica concludes its Corporate Restructuring and becomes the largest polypropylene producer in Latin America
http://www.suzanopetroquimica.com.br/en/downloads/comunicado_reestruturacao_051201_en.pdf

Suzano Petroquimica S.A., latin-american leader in polypropylene production and a joint controlling shareholder of relevant players in the petrochemical sector - Rio Polimeros S.A., Petroflex Industria e Comercio S.A. and Politeno Industria e Comercio S.A., informs that all corporate actions necessary to transform Suzano Petroquimica into an operational company have been completed yesterday.
In line with the commitment of simplifying its corporate structure and improving transparency, in the Shareholder
fs General Meeting held yesterday Suzano Quimica Ltda., Polipropileno S.A., Polibrasil Resinas S.A. and Polibrasil Compostos S.A. were merged into Suzano Petroquimica S.A., which succeeded them in all rights and duties, reaching the following corporate structure:

@@@@@ŠeŽÐŠT—v Riopol@Petroflex@Politeno@PQF

This important corporate simplification was possible due to the success (i) of the Public Tender Offer for the Acquisition of Polipropileno S.A shares, which financial settlement happened on November 29; and (ii) the redemption of its shares.
Accordingly, the Public Tender Offer for the Acquisition of Polipropileno Participacoes S.A shares was also successfully implemented, with financial settlement also happening on November 29,2005. Since the remaining float of shares after the Offering was slightly higher than 5% of the its total capital, the minority shareholders who did not adhere yet, still have the possibility to sell their shares during a 3-month period, starting November 29, 2005.
It is expected that after that 3-month period, SPQ Investimentos e Participacoes Ltda. will be able to incorporate Polipropileno Participacoes S.A..

As a result of the corporate actions implemented yesterday, Suzano Petroquimica assumes per se the position of the leading company in the polypropylene business in Latin America. The Company believes it has exceeded the market expectations with respect to the timetable for the implementation of its corporate restructuring and reaffirms its firm proposal of positioning the Company as one of the leaders in the Petrochemical Industry in Brazil and in Latin America.


November 30, 2005. Suzano Petroquimica

Riopol starts operation and concludes first sale of polyethylene
http://www.suzanopetroquimica.com.br/en/downloads/comunicado%201a%20venda%20Riopo%20Final%20eng.pdf

Suzano Petroquimica S.A., the Latin American leader in the production of polypropylene and a joint controlling shareholder of relevant players in the petrochemical sector - Rio Polimeros S.A., Petroflex Industria e Comercio S.A. and Politeno Industria e Comercio S.A., aiming at keeping the market updated on the initial operation of Riopol, announces that the company has initiated its polyethylene production and has already effected the first polyethylene sale.
After the start up of the industrial facilities and a period stabilization of its operations, Riopol restarted its polyethylene production process at its first production line last week, which has a total production capacity of
270 thousand tons of polyethylene per year and that will be dedicated to the production of linear low density polyethylene (LLDPE), which is already being produced within the required specifications.
Almost 1,000 tons of polyethylene have been produced and the Company
fs first sale, amounting to 50 tons, was made to a film producer in the State of Sao Paulo. Riopol is also selling polymer-grade propylene to Suzano Petroquimicafs polypropylene unit located close to Riopol, and also hydrogen to Petrobrasf Refinary in Duque de Caxias,Rio de Janeiro.
Next week, the second polyethylene production line with also a total production capacity of
270 thousand tons per year is scheduled to start operating, and will be dedicated to the production of high density polyethylene (HDPE).
The Riopol project has now overcome the normal difficulties faced during its initial start up phase and Suzano Petroquimica is confident that the company
fs activities should proceed at a normal pace from now on. It is worth mentioning that Riopol should have a quite fast learning curve, achieving the 460 thousand polyethylene production expected for 2006.
Therefore, Suzano Petroquimica confirms its belief that Riopol, a pioneer project in Brazil, is now definitely assuming its relevant position in the Brazilian petrochemical industry.


PQU

PQU, Brazil's first basic petrochemical products plant, was incorporated December 12, 1966 under the name Petroqui'mica Unia~o Ltda., with a capital of 50,000 cruzeiros. Its proposition was the ambitious project of installing Latin America's largest petrochemical complex, resulting from the agreement between Refinaria e Explorac,a~o de Petro'leo Unia~o S.A., in Capuava, Santo Andre' (the present-day RECAP of Petrobras, then owned by the Soares Sampaio, Ultra and Moreira Salles groups), and the American company Phillips Petroleum.

In 1968, Phillips Petroleum withdrew from the project, being replaced on June 15 (at a special stockholder's meeting) by Petroquisa, the latter being authorized to associate with PQU in December of the same year. In this way, Petroqui'mica Unia~o became a joint-stock company.

The basic design of the plants was contracted with Lummus, of New Jersey, a company of great experience with similar facilities, while engineering and assembly supervision were in charge of Socie'te' Franc,aise de Techniques Lummus (SFTL), a subsidiary of the former. The construction and assembly work started with the laying of the foundation-stone on April 11, 1969.

Petroquisa's participation as a shareholder of PQU assured the organized and balanced implementation of Sa~o Paulo's Petrochemical Complex, basically comprising the central plant and additional 39 companies being supplied with the basic and intermediate products generated.

From 1971 onward, PQU's shareholder body was composed by
90% of domestic capital, from Petrobras (Petroquisa) and Unipar, a domestic private group, and 10% of foreign capital, from companies such as International Finance Corporation, Provident International Corporation, Citicorp, and Venture Capital Ltd.

On June 15, 1972, Petroqui'mica Unia~o S.A. started up its production, inaugurating Phase I of the complex. Phase II was completed in March 1974, when the rated capacity of 300 thousand tons of ethylene per year was achieved. In the same year, the ethylene pipeline was extended to Cubata~o. By decision of its shareholders, PQU now also supplied the low density polyethylene plant owned by Union Carbide.

In November 1980, the DBN I (Debottlenecking) project was completed, increasing ethylene production from 300 thousand to 360 thousand tons per year.

In January 1989, the Polibutenos S.A. Indu'strias Qui'micas - PIB plant starts up, with 12 thousand tons yearly capacity. PIB is an association of Petroqui'mica Unia~o with Unipar and Chevron do Brasil, the plant being installed within the PQU industrial complex, making use of its infrastructure, and employing its butenes stream to produce polyisobutenes in several viscosity ranges. This product, until then imported, is employed as dispersant in lube oil additives, in the formulation of protective varnishes, water-proofing of electric cables, and manufacture of industrial products.


Aug 3, 2007 Reuters

Brazil's Petrobras says to buy Suzano petrochem firm

Brazilian state oil company Petrobras said on Friday it had agreed to buy control of Suzano Petroquimica for 2.1 billion reais ($1.1 billion) in the second major Brazilian petrochemicals deal this year.

In March, Petrobras and two partners, Latin America's largest petrochemical company Braskem and Ultrapar Participacoes ,
bought petrochemical and fuel company Ipiranga for $4 billion.

2007/3/23 ƒuƒ‰ƒWƒ‹‚ŐΖûEÎ–û‰»Šw‹ÆŠE‚̍ĕÒ

ƒuƒ‰ƒWƒ‹‘‰cÎ–û‰ïŽÐPetrobras‚ÆUltra GroupABraskem‚Ì3ŽÐ‚ª‹¤“¯‚ŁA“¯‘‚̐Ζû¸»E”Ì”„AÎ–û‰»Šw‚̘V•Ü‚ÌIpiranga‚𔃎û‚·‚éB19“úAPetrobras‚ª”­•\‚µ‚½B

@

PP@”\—́@içƒgƒ“j
@ Œ»ó ‘‹­Œã ‘‹­ŽžŠú
Maua industrial facility, Sao Paulo @360.0 @450.0 2008‰ºŠú
Duque de Caxias industrial facility, Rio de Janeiro @200.0 @300.0 2007
Camacari industrial facility, Bahia @125.0 @ @
Total @685.0 @750.0 @

Suzano Petroquimica

We are the leading company in Latin America in the production of polypropylene, a thermoplastic resin, 100% recyclable, widely used in the manufacture of textile and civil construction supplies, domestic appliances and packages for the food, cosmetics, pharmaceutical and civil construction industries, and which is presented in three basic types: homopolymers, heterophasic copolymers and random copolymers.