Braskem (BAK) said Friday its board approved a 4.2 billion Brazilian reais ($782.6 million) investment to expand the ethane-based ethylene capacity at its Rio de Janeiro plant by 220,000 tons per year, with matching polyethylene output.

The project aims to support competitiveness by increasing the use of gas as feedstock for polyethylene production, the company said.

Completion is targeted for the end of 2028 and depends on securing additional financing beyond REIQ benefits already approved for 2025 and 2026, Braskem added.

Braskem also said it approved sourcing extra ethane through a long-term supply deal with Petrobras (PBR, PBR.A), pending final contract negotiations.

Shares of Braskem were up about 1.8% in recent trading.