ULTRAPAR 2015 ANNUAL REPORT

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Our businesses

Oxiteno

In its 40 years of existence, Oxiteno has developed a strong technological capability in surfactants, allowing it to focus on the production of specialty chemicals, becoming a key differentiating element.

9

countries

12

industrial units

1,806

employees

In 2003, the company started an internationalization process and now has 12 industrial units, throughout five countries – Brazil, Mexico, Uruguay, USA and Venezuela. The company also has commercial offices in Argentina, Colombia, Belgium and China. This geographical distribution allows Oxiteno to maintain dominance in Latin America, providing strategic advantages: making the best use of raw materials at competitive conditions, knowledge exchanging and proximity to customers.

Oxiteno has taken significant steps in 2015 to expand its presence in North America, deepening its process of internationalization, with the announcement of the construction of an alkoxylation plant in Pasadena, in the state of Texas (USA). The investments planned for the new unit total US$ 113 million over 2016 and 2017. The new plant will allow Oxiteno to compete more effectively in the US surfactants market, deepening its presence in the NAFTA economic block. The presence in this market is also strategic due to the opportunity to use raw materials derived from shale gas.

Leading producer of surfactants in Latin America, Oxiteno also stands out for its focus on the use of renewable raw materials, which already represent 25% of its base.

Also in 2015, Oxiteno concluded the expansion project of its specialty chemicals production capacity in Coatzacoalcos, Mexico, by 30 thousand tons, doubling the capacity of the plant. The additional capacity will enable it to serve the demand mainly in the NAFTA region. The expansion included various sustainable initiatives in its implementation, such as the use of the air cooler technology in the reactor, avoiding the use of water in the cooling process, and the adoption of a new generation digital security system for industrial automation.

Another feature of Oxiteno’s corporate culture is a strong backing in innovation, with investments and significant efforts dedicated to product development. In this process, the company also stands out for its focus on the use of renewable raw materials, which already represent 25% of its base.

Another strong feature is the partnership relation with its customers through the co-creation of solutions. This combination of efforts provides significant competitive advantages to Oxiteno as the largest producer of specialty chemicals and fatty alcohols in Latin America and the only producer of ethylene oxide in Brazil.

INNOVATION

R$ 41 mi

invested in 2015

3

R&D centers

133

employees especially dedicated to R&D

Oxiteno carries out constant adjustments of its plants in accordance with the growing needs of the market, through investments in expansion, maintenance and modernization of plants. For example, the Triunfo plant (RS) received a new control system in late 2014. The project, which involved the acquisition of equipment and software, provided benefits such as increased security, stability and efficiency in the control of approximately one thousand instruments distributed throughout the plants. In January 2015, Oxiteno launched a new and more modern control room that is able to manage all processes at the Suzano (SP) unit as well. Among the benefits of this change is the possibility of a single operator manage the processes of the two plants at the same time.

In order to constantly improve its processes, in 2015, Oxiteno obtained important certifications in the area of good manufacturing practices for the units of Camaçari (BA) and San Juan del Rio by ISO 22716. The certification establishes strict criteria for procedures from the definition of suppliers to the delivery of finish products to the client, through all stages of manufacturing. This recognition is one of the steps of the Quality as Value in Home & Personal Care (HPC) program.

In January 2015, two units of Oxiteno achieved important goals regarding good quality and safety practices. The Triunfo unit completed its work to obtain the OHSAS 18001 certification, successfully passing the external audit at the end of December/2014. In the same month, the Guadalajara unit renewed its validity term for the ISO 9001:2008 certification.

The Guadalajara unit also won, in December 2014, the BRC certification, which establishes globally accepted standards in terms of safety and quality. The certification was an important step to further strengthen the relationship between Oxiteno and food market clients.

SALES VOLUME ’000 ton

NET REVENUES R$ million

EBITDA R$ million

 

Competitive advantages

  • The largest specialty chemicals producer in Latin America.
  • The only producer of ethylene oxide in Brazil and fatty alcohol in Latin America.
  • Production capacity maintained above the domestic demand.
  • Dominance of the surfactants technology, which ensures constant differentiation in dynamic segments such as the cosmetics market.
  • Constant and substantial investments in innovation, with the development of products through co-creation with its customers.

Highlights in 2015

  • Approval of the construction of an alkoxylation plant in Pasadena, in the State of Texas (USA), with planned investments of US$ 113 million.
  • Expansion of the production capacity of alkoxylated products in Mexico.
  • Investments in modernization of other industrial units.

SOCIAL-ENVIRONMENTAL PERFORMANCE

Oxiteno began supporting cultural activities in the Cultural Action Program (“Programa de Ação Cultural – ProAC”) of the São Paulo State Cultural Department, which authorizes the conversion of up to 3% of the State VAT tax for sponsoring initiatives that are pre-approved by the São Paulo state government. The company has already supported two projects under this program: the 11th Dance Season of Alfa Theatre (“11ª Temporada de Dança do Teatro Alfa”) and the Emcena Brazil Project.

The research and development center in Mauá (SP) conducted a study in its pilot plant to evaluate the consumption of natural resources in the production lines. The project identified new opportunities to reduce the use of inputs such as alcohol and electricity.

The unit obtained, for example, a saving of 200 liters per month by reusing the water used in washing of equipment and sanitation. Once a detailed assessment of the results of the project is concluded, the intention is to adopt it in other Oxiteno’s facilities. In 2015, Oxiteno’s unit in Uruguay received about 40 young people who participated in a guided tour at Montevideo facilities. The initiative was conducted in partnership with the Los Pinos Educational Center, an NGO that maintains various social projects around the country’s capital. In an integrated manner, the areas of Safety and Environment, Production and Human Resources drew up a plan that allowed future industrial workers to get to know in practice the content they have access to during the seven-month course organized by the NGO. In addition to encouraging the development of new talent, Oxiteno aims to strengthen its relationship with the communities near its facilities.

Awards

In 2015, Oxiteno was once again recognized by the magazine Você S/A. as one of the best companies to work for.

For the second consecutive time, Você S/A. magazine recognized Oxiteno as one of the best companies to start a career. The recognition reinforces organizational values of the company, such as “Excellence” and “Relationship”, and places Oxiteno in a prominent position in the development of young professionals and the promotion of an environment of opportunities and growth, with processes and programs that are well evaluated by the market and internal public.