SAO PAULO- Brazilian petrochemical company Braskem SA is considering to spin off its biopolymers division, newspaper Valor Economico reported on Wednesday.

Braskem has hired the investment banking unit of Citigroup, the paper said, citing people with knowledge of the matter. The division, that produces resins from renewable sources, may pursue an initial public offering or look for partners to raise around $500 million, the paper added.

The so-called "green plastic" division would be valued at around $2 billion, according to Valor. Citigroup and Braskem did not immediately reply to requests for comment.

(Reporting by Tatiana Bautzer, Editing by Louise Heavens)