Braskem official highlights expansion potential in Mexico

By Stephen Downer
Correspondent

Published: October 11, 2012 6:00 am ET

Related to this story

Topics Materials Suppliers
Companies & Associations

GUANAJUATO, MEXICO (Oct. 11, 1:30 p.m. ET) — Brazilian giant Braskem SA may build its second petrochemical complex on Mexico’s Gulf Coast within a decade, according to a senior company official.

Braskem, Latin America’s largest petrochemical company, owns 65 percent of a joint venture that is constructing a petrochemical complex, including an ethylene cracker and three polymerization plants, in Coatzacoalcos, Veracruz state, in the Gulf of Mexico.

Mexican petrochemical company Grupo Idesa SA de CV is Braskem’s partner in a project scheduled to go on stream in 2015. Idesa owns the joint venture’s remaining 35 percent.

“We believe this project could be the first of others” in Mexico, Cleantho Leite Filho, Braskem Idesa’s commercial and business development director, told a plastics industry conference in late September.

“We know a country like Mexico will present many other opportunities. We think that if Mexico continues [to grow] like this, in the next five, seven, 10 years we could build another plant in the Gulf of Mexico.”

Braskem, headquartered in São Paulo, is also “considering other projects in Bolivia, Peru and Venezuela,” he added, without giving details as to what they might be.

The Braskem-Idesa joint venture, known as Ethylene XXI, was formalized in March, 2010. Braskem’s investment in it is $3.3 billion, Leite said. The cracker will produce 2.3 billion pounds of ethylene per year, he said, while there will be two high density and one low density polyethylene plants at the complex, where the flattening and preparation of the land is “90 percent finished.”

“We are starting pre-marketing operations,” the Brazilian official added, explaining that that included “testing clients” and “improving our knowledge of the Mexican market.”

Ethylene XXI “represents the reactivation” of the petrochemicals industry in Mexico, Idesa, Mexico’s fifth largest petrochemicals company, with sales in 2011 of $625 million, according to Leite, said in a statement in 2010.

“One of the most relevant positive effects [of the complex] is that Mexico will be able to substitute the importation of polyethylene worth approximately $2 billion a year.

“It will have a strong impact on Mexico’s trade balance, in addition to creating 6,800 jobs during the complex’s construction and about another 800 permanent jobs at the complex, once work is finished.”

Leite was a speaker at the two-day convention of Mexico’s plastics industry association, Anipac (Asociación Nacional de Industrias del Plástico AC).


Comments

Braskem official highlights expansion potential in Mexico

By Stephen Downer
Correspondent

Published: October 11, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

North American Pipe unit lab to focus on 'modern, innovative' formulations

March 31, 2015 3:25 pm ET

North American Specialty Products LLC — a unit of North American Pipe Corp. — has opened a new material science lab in Leola, Pa.    More

Image

Top suppliers of engineering polymers

March 31, 2015 12:16 pm ET

   More

Image

Polymer Additives, Lubrizol expansions win tax incentives

March 31, 2015 10:22 am ET

Proposed expansions by Polymer Additives Inc. in Cuyahoga County, Ohio, and Lubrizol Corp. in Lake County, Ohio, were among 12 projects statewide...    More

Image

BPF warns of materials shortages

March 31, 2015 10:11 am ET

The British Plastics Federation (BPF) has warned the whole plastics supply chain that plastics processors are currently facing shortages of certain ke...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events