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, Mexico, Materials Suppliers

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

Image

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events