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In its May 2010 6-K report form, Braskem reports that operational problems in Iran may affect the company’s profitability:
"The outlook for the medium term is less favorable, as the industry expects the new capacity coming online in the Middle East and Asia to pressure profitability in the world petrochemical industry as of the second half of this year, since the additional capacity announced exceeds the expected growth in demand. However, various factors could minimize the impact from these new players and maintain industry profitability at levels above current expectations, such as: (i) continued operational problems in Iran, where crackers have operated at rates of around 50% since their start-up (2005); (ii) project and commissioning delays at these new capacities; (iii) the lack of qualified labor; (iv) problems with the supply of natural gas feedstock, such as in Qatar; and (v) stronger growth in world demand." (SEC, May 2010 6-K Report Form, 5/14/10)