We are the largest acrylics and styrenics company in Latin America, in terms of nominal production capacity (based on data from IHS and ABIQUIM). Our proven operational track record goes back to 1966, when we started producing thermoplastic resins with our own proprietary technology in São Paulo, Brazil. Today, we are a vertically integrated chemicals company that produces a diversified portfolio of chemical, petrochemical, plastic products and fertilizers from multiple facilities in Brazil and Mexico. In 2017, we were the sole producer of acrylonitrile and MMA in Latin America (based on data from IHS) and we had the largest nominal production capacity of styrene and polystyrene (combined) in Latin America (based on data from IHS and ABIQUIM).
We operate several chemical plants distributed in three main regions (Bahia, São Paulo and Mexico), strategically located near (i) petrochemical complexes, from where we are supplied with our main raw materials, and (ii) our key markets. We serve multiple customers from a broad spectrum of industries, including construction, automotive, home appliances, electronics, agriculture, textile, mining, packaging and health care. Over the past five decades, we have developed a strong relationship with the largest suppliers and end-users in the petrochemical industry in Latin America and have developed state-of-the-art facilities and proprietary technology to provide our clients innovative solutions and products.
For the years ended December 31, 2017, 2016 and 2015, we recorded net sales of R$2,787.6 million, R$2,480.4 million and R$2,523.7 million, respectively, net profit (loss) for the year of R$(60.4) million, R$11.4 million and R$99.4 million, respectively, and Adjusted EBITDA of R$369.0 million, R$247.2 million and R$343.5 million, respectively. For the years ended December 31, 2017, 2016 and 2015, sales of our acrylics products represented 50.4%, 48.2% and 52.1% of our net sales, respectively, and sales of our styrenics products represented 49.6%, 51.8% and 47.9% of our net sales, respectively.
We sell two main categories of products, as follows:
Our acrylics business mostly consists of the production and sale of acrylonitrile, methacrylates (MMA and EMA), cell cast acrylic sheets, sodium cyanide and ammonium sulfate, which are used primarily in textile, automotive, construction, health care and electronics applications, or Acrylic Business. Our acrylics products are mainly sold to chemical manufacturers and transformers. Our Acrylics products accounted for R$1,406.2 million, R$1,197.6 million and R$1,314.7 million, or 50.4%, 48.2% and 52.1%, of our net sales in 2017, 2016 and 2015, respectively.
We produce our acrylics products at production complexes located in Bahia, Brazil, and in Mexico:
- Bahia: We operate two production sites, Camaçari and Candeias, in which we produce acrylonitrile, methacrylates (MMA and EMA), sodium cyanide, ammonium sulfate and other products, such as PMMA resin, acetonitrile and other intermediate products that are consumed in our production processes, such as ACH and HCN. Given the strategic location of our facilities and our integrated business model, our production sites in Bahia supply MMA to our Mexican cell cast acrylic sheets production. As of December 31, 2017, our Bahia production sites had an annual combined nominal production capacity of 100,000 tons for acrylonitrile, 90,000 tons for methacrylates (MMA and EMA), 52,000 tons for sodium cyanide (solution and solid, combined) and 450,000 tons for ammonium sulfate (powder and granular, combined). We also own two plants in Bahia with an annual combined nominal production capacity of 16,000 tons of acrylic sheets, which are currently idled.
- Mexico: We operate two cell cast acrylic sheet plants located in Ocoyoacac and San Luis Potosí, and one sulfuric acid plant, located in Cosoleacaque. We also own one MMA plant in Cosoleacaque and an ACH plant in Coatzacoalcos, which are currently idled. As of December 31, 2017, our Mexican production sites had an annual combined nominal production capacity of 18,000 tons for cell cast acrylic sheets.
Our styrenics business mostly consists of the production and sale of styrene, polystyrene and latex, which are used primarily in the production of consumer goods, electronics, construction materials and home appliances, or Styrenics Business. Our styrenics products are also mainly sold to chemical manufacturers and transformers. Our styrenics products accounted for R$1,381.4 million, R$1,282.8 million and R$1,209.0 million, or 49.6%, 51.8% and 47.9% of our net sales, in 2017, 2016 and 2015, respectively.
We produce our styrenics products at production complexes located in Bahia and São Paulo, both in Brazil:
- Bahia: We operate one production site in Camaçari, in which we produce styrene. As of December 31, 2017, our Bahia production complexes had an annual combined nominal production capacity of 160,000 tons for styrene. Part of the styrene produced at our Camaçari site is used as a raw material in our integrated polystyrene and latex production facilities in our sites located in São Paulo, Brazil. In 2018, we will complete investments in our Camaçari site that will increase our annual production capacity of styrene to 180,000 tons.
- São Paulo: We operate industrial facilities located in three different sites in São Paulo: Cubatão, São José dos Campos and Guarujá. We produce styrene in our industrial facility located at the Cubatão petrochemical complex, close to the port of Santos, one of Latin America’s main ports. In São José dos Campos, we operate a polystyrene plant located in the Monsanto industrial park. We also operate a polystyrene plant and a latex plant located in Dow Chemical’s petrochemical site in Guarujá, close to the port of Santos. As of December 31, 2017, our São Paulo industrial sites had an annual combined nominal production capacity of 120,000 tons for styrene, 310,000 tons for polystyrene, and 42,000 tons for latex.
The map below shows the location and the annual nominal production capacity (in tons per year) of key products in our production sites as of December 31, 2017:
(1) Solution sodium cyanide only.
(2) Powder ammonium sulfate only.
(3) Idled capacity.
(4) Includes 70,000 tons per year of idled capacity.