Braskem could boost its investments in Mexico by 30% because of country's ongoing energy reforms, which should increase availability of raw materials in petrochemical sector
October 11, 2013
– Braskem, Brazilian petrochemical company contrives to build up its investments in Mexico as a result of the country's ongoing reforms of its energy sector.
Roberto Bischoff, head of Braskem's Latin America unit, stated that the firms US$3.5bn Ethylene XXI partnership in Mexico observes only the beginning of Braskem's investment strategy in Mexico.
In an interview with El Financiero, Bischoff said that as a result of Mexico's energy reforms, Braskem could increase its investments by 30%.
"The energy reform that has been proposed opens investment opportunities in the petrochemical industry by increasing the availability of raw materials," he said. "We see an opportunity to increase our investments."
According to Bischoff, Braskem will build a 150MW power plant to supply Ethylene XXI, an investment of US$150mn.
"With the energy reforms we have plans to increase this infrastructure, which will also enable us to sell electricity to third parties," he said.
In the Coatzacoalcos region of Veracruz state, Ethylene XXI, which is located will have annual production capacity of 1.05Mt polyethylene (PE) and an equal volume of ethylene feedstock, with two high-density polyethylene (HDPE) lines and one conventional low-density (LDPE) line. Production from the site will help reduce Mexico's trade deficit in PE and will also be exported.
Braskem has a 70% stake in Ethylene XXI, with Mexican industrial conglomerate Idesa owning the remaining 30%.
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