MOSCOW (MRC) -- Braskem Idesa, the 75-25 joint venture of Braskem and Idesa (Mexico City), will officially inaugurate Ethylene XXI, its petrochemical complex at Nanchital, Mexico, this week, said Chemweek.
"Production in Mexico raises Braskem to a new level," said Fernando Musa, CEO of Braskem, during a press conference in Mexico City on Monday evening. "We have broadened the reach of our operations."
The USD5.2-billion complex consists of an ethane cracker and three downstream polyethylene (PE) units with total production capacity of 1.05 million m.t./year. The downstream complex consists of two high-density PE (HDPE) production units and one low-density (LDPE) unit.
Half of the total output to be marketed will initially be allocated to Mexico with the rest exported to markets including North America, Central America, Europe, and potentially Asia, Musa said. However, over the next 3-5 years, the plan is for 80-90% of the total production to be sold to the domestic market, Musa said. Mexico currently imports more than 60% of its PE consumption. Braskem expects Mexico's PE demand to grow on average 3-4% over the next few years, above the 2.5-3% anticipated growth rate of the Mexican economy.
The Ethylene XXI cracker's feedstock needs are being met under a 20-year ethane supply agreement with Petroleos Mexicanos (Pemex). Braskem Idesa started HDPE production at the site in April and the LDPE plant is expected to be up and running by 22 June, said Roberto Bischoff, CEO of Braskem Idesa.
Braskem Idesa does not have plans to expand at this time, but production could potentially be hiked if additional feedstock is made available locally. "First tenders for exploration have taken place under Mexico's energy reform, however the potential for new exploration to turn up new raw material supplies is still unknown," Bischoff added.
Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC