São Paulo, September 29, 2020
Brazilian Securities & Exchange Commission (CVM)
Ref.: Official Letter no. 320/2020/CVM/ SEP/GEA-1 - Request for clarification of media reports
In reference to Official Letter 320/2020/CVM/SEP/GEA-1 ('Official Letter'), dated September 28, 2020, through which you requested clarifications from Braskem S.A. ('Braskem' or 'Company') with regard to the report published in the newspaper O Globo, in the column of Lauro Jardim, as transcribed below:
'There's only problems.
If the R$8.7 billion that Braskem already has committed to pay in compensation for the subsiding of soil in four districts of Maceió, Alagoas were not enough, now the environmental liabilities are starting to emerge.
This time the problem is at Braskem's solvents plant in Madre de Deus, Bahia. The claim, dating from two decades earlier, involves soil contamination. Even Braskem could make the problem public to facilitate its sale, since the agents participating in the process are forcing the company to get all its skeletons out of the closet.'
In this regard, Braskem informs that, over 30 years ago a leak of chemical products occurred from a tank installed on a property owned by the company Companhia Carbonos Coloidais ('CCC'), located in Madre de Deus, Bahia. These products were property of the company Tecnor Tecnolumen Química do Nordeste Ltda. ('Tecnor') and may have been acquired by domestic producers at the time, including Companhia Petroquímica de Camaçari, a company that subsequently was merged into Braskem. Both CCC and Tecnor are companies that have never had any corporate relations with Braskem and no longer have any operating activities. Moreover, the Company clarifies that it has never had any industrial operation in the Municipality of Madre de Deus, Bahia.
In this sense and given the Company's experience in the chemical and petrochemical industry and related products, the authorities requested Braskem's collaboration for analysis, studies and environmental remediation, with monitoring by local authorities, which has been occurring since 2003, and is not related to any potential sale of the Company. For the remediation actions, the Company estimates the approximate amount of R$110 million, which has been partially provisioned.
Braskem has been having discussions with the authorities regarding the continuity of the required environmental remediation actions and will keep the market informed of any material developments related to the matter, to the extent required by applicable law, and cannot predict with certainty future developments in respect of this matter and the costs to be incurred by the Company may be different than estimated.
Lastly, Braskem reaffirms its constant efforts to act in compliance with the best environmental and social management practices, for its Team Members and local communities.
Pedro van Langendonck Teixeira de Freitas
Chief Financial and Investor Relations Officer
Braskem S.A .
Braskem SA published this content on 29 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2020 22:59:00 UTC