Braskem might build second petrochemical complex in Mexico within 10 years, also eyeing projects in Bolivia, Peru and Venezuela, says company official; its JV petrochemical project in Mexico with Idesa now doing groundwork

LOS ANGELES , October 12, 2012 () –

Braskem SA is considering projects in various Latin American countries, including building a second petrochemical complex in Mexico’s Gulf Coast within 10 years, said a Braskem executive, reported Plastics News on Oct. 11.

The São Paulo, Brazil-based petrochemicals giant is currently building a petrochemical complex in Coatzacoalcos, Veracruz state, in the Gulf of Mexico, in a joint venture with Mexican petrochemical company Grupo Idesa SA de CV.

Groundwork on the project is about 90% complete, said Cleantho Leite Filho, Braskem Idesa’s commercial and business development director, at a two-day conference in Mexico in late September, Plastics News reported.

If Mexico continues to grow as it is now, Braskem could build another plant in the Gulf of Mexico in the next five to 10 years, he said. The two-day conference was sponsored by the Asociación Nacional de Industrias del Plástico AC.

Braskem also is considering projects in Bolivia, Peru and Venezuela, said Leite, but he did not provide any details, reported Plastics News.

Braskem’s joint venture with Idesa, known as Ethylene XXI, will produce 2.3 billion pounds of ethylene annually, with two high density and one low density polyethylene plants at the complex, he said.

This will allow Mexico to eliminate about US$2 million in PE imports yearly, said Leite. Ethylene XXI, which is owned 65% by Braskem and 35% by Idesa, is expected to be completed and go onstream in 2015, Plastics News reported.

“Pre-marketing operations” that include “testing clients” and “improving our knowledge of the Mexican market” have already begun in preparation for the complex’s startup, said Leite. Braskem has invested US$3.3 billion in the project.

Braskem is the largest petrochemical company in Latin America, while Idesa is Mexico’s fifth largest petrochemical company, according to a statement from Leite in 2010, reported Plastics News.

The primary source of this article is Plastics News, Akron, Ohio, on Oct. 11, 2012.

 

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