Mexico City — Braskem SA said Jan. 7 polyethylene production at its Mexico subsidiary Braskem Idesa S.A.P.I. had "partially resumed" but it could not estimate when the plant would resume full activities.
The subsidiary's Ethylene XXI complex in Veracruz state was forced to halt production at the beginning of December after the Mexican government unilaterally halted all feedstock supplies to the complex over a feedstock contract dispute signed in 2010.
In a statement, the Brazilian petrochemical giant said legal measures "have been initiated by BI, as established in the ethane supply agreement entered into between BI and Pemex [Petróleos Mexicanos], and by Braskem Netherlands B.V, BI's direct shareholder, based on applicable international rules, to enforce legal and contractual rights of BI and its parent company and seeking to protect its investment in Mexico."
The company added that "such measures include a remediation and negotiation period during which it will seek a resolution between the parties."
It said that BI "remains subject to an adverse scenario" due to the interruption of the natural gas supplies "and cannot estimate, at this moment, the date for the full return of BI activities or the impact of the disruption of such activities."
The partial resumption was based on "an experimental business model," Braskem said, in accordance with safety standards. The idea was to "reduce the impact" on the Mexican plastic industry's supply chain.