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

Performance Plastics unit helps lead to increase in sales for Dow Chemical

April 24, 2014 9:57 am ET

Dow reported turnover of $14.5 billion April 23, including an adjusted 6 percent increase in sales at its performance plastics operation, which it...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for...    More

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Worker dies in fall at Formosa Texas plant

April 23, 2014 4:04 pm ET

A subcontractor died April 22 after falling 25 feet during routine cleaning operations at a Formosa Plastics Corp. USA facility in Point Comfort,...    More

Image

CPM Extrusion, ECON launch new line of underwater pelletizers

April 23, 2014 11:25 am ET

CPM Extrusion Group and ECON GmbH unveiled their brand new EUPC line of underwater pelletizers today at ChinaPlas held in Shanghai, China.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events