Braskem and Grupo Idesa court Mexican plastics processors

By Stephen Downer
Correspondent

Published: November 11, 2013 4:15 pm ET
Updated: November 11, 2013 4:19 pm ET

Image By: Stephen Downer Some 52 percent of the Ethylene XXI joint venture is finished, according to the project's business development and commercial director.

Related to this story

Topics Materials, Materials Suppliers, Mexico

COATZACOALCOS, MEXICO — Braskem SA's Ethylene XXI joint venture with Mexico's Grupo Idesa SA de CV is on target to start operations in July, 2015, and is within its $4.5 billion budget, according to the project's business development and commercial director.

"As in any mega project, it's very difficult to control all the variables but we are still managing to keep [the project] on time and within budget," Cleantho de Paiva Leite Filho, told Plastics News Nov. 7.

He added in an email: "up to now no major issue has caused a delay or problems in the construction, and we hope it will stay like that."

Leite spoke at the complex in the state of Veracruz. Braskem and Idesa started developing the site in 2010, after formalizing a 20-year agreement with Pemex Gas y Petroquímica Básica for the supply of ethane gas.

The site, in the municipality of Nanchital, a half mile from Coatzacoalcos on the Gulf of Mexico, covers 494.2 acres, equivalent to 373.7 American football fields.

Fifty-two percent of the project is finished, Leite said. Earlier he told an audience of 45, including potential customers who had been flown in on a chartered jet from Mexico City, that Ethylene XXI is Braskem's largest project to date.

It comprises an ethane cracker, which will produce 1.05 million metric tons of ethylene annually; two polymerization plants with a capacity to produce 750,000 metric tons of high density polyethylene a year, using Ineos technology; and a third polymerization plant that will produce 300,000 metric tons a year of low density PE using LyondellBasell technology.

Currently Mexico imports 60 percent of the 1.9 million metric tons of PE the country's plastics processors consume every year, according to Braskem-Idesa and Mexican consultancy Centro Empresarial del Plástico SA de CV, of Mexico City.

According to Centro Empresarial, 53 percent of the 1.9 million metric tons is used in film, 21 percent in blow molding, 11 percent in injection, 5 percent in pipe, 4 percent in rotational molding and 7 percent for other purposes.

Braskem-Idesa believes Ethylene XXI will improve Mexico's trade balance by $2 billion a year by substituting the importation of PE.

Asked whether Braskem Idesa had signed any supply contracts with customers in Mexico or elsewhere, Leite replied that "for the moment it is still premature to be talking about contracts.

"We have started the pre-marketing and we have already many customers with whom we are interacting in preparation for the operation phase."

Plastic processing company executives on the tour expressed optimism about the future of their businesses once Ethylene XXI is up and running.

"We think we'll have better supply and price options and this certainly will benefit Minigrip and enhance the value of our products," Luis Olavarri Hervella, operations director of Minigrip de México SA de CV, said.

Based in Mexico City, Minigrip is a leading manufacturer of flexible packaging and processes 25 million pounds of resins a year. It was founded in 1966.


Comments

Braskem and Grupo Idesa court Mexican plastics processors

By Stephen Downer
Correspondent

Published: November 11, 2013 4:15 pm ET
Updated: November 11, 2013 4:19 pm ET

Post Your Comments


Back to story


More stories

Proposed Shell project draws more than 1,000 to informational meetings

April 17, 2014 2:03 pm ET

More than 1,000 people attended a pair of public meetings hosted by Shell Chemical LP on April 16 to discuss the possibility of building a major...    More

Image

Hedging can slow the resin rollercoaster

April 17, 2014 3:00 pm ET

The good old days — if they even ever existed — are gone, and.Andy VanPutte thinks volatility in the resin market is here to stay and...    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Indorama's purchase of Sasa to give wider access to multiple markets

April 16, 2014 10:07 am ET

PET maker Indorama Ventures Public Co. Ltd. is expanding in Turkey with the acquisition of a majority of Sasa Polyester Sanayi.    More

Axiall resumes operations at damaged Lake Charles PVC feedstock plant

April 15, 2014 4:41 pm ET

Axiall Corp. has resumed operations at its PVC feedstock plant that was damaged by a fire in December.
More

Market Reports

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

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

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