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

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

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Haitian's standardization efforts paying off

August 29, 2014 9:53 am ET

Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International...    More

Image

Updating a travel icon for the professional millennial

August 29, 2014 11:44 am ET

As part of a drive to expand its customer base to include more millennials, Airstream Inc. turned to the Columbus College of Art & Design's...    More

Image

American Starlinger-Sahm begins work on new US headquarters

August 29, 2014 10:18 am ET

American Starlinger-Sahm Inc., which sells equipment for woven plastic bag production, PET recycling equipment, sheet extrusion and laminating lines...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and Ch...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events