November 9 (chempoint.com) -- Braskem S.A. ("Braskem"), in compliance
with CVM Instruction 358/02, announces to shareholders and the market
that, in association with IDESA, a traditional Mexican corporate group,
it won the auction held by Pemex Gas, a state-owned Mexican company,
for the acquisition of ethane, which will be used as feedstock for an
integrated petrochemical project to be developed in that country
("Project Ethylene XXI").
Project Ethylene XXI, which is scheduled to start operations in 2015
and will be located in the Coatzacoalcos Petrochemical Complex in the
Mexican state of Veracruz, has the main objective of supplying Mexico"s
domestic market, which is currently a
polypropylene
importer. The Project will be installed and operated through a joint
venture to be created, with IDESA"s participation and controlled by
Braskem. IDESA, a Mexican company with an active presence in
international markets, has three business areas: Petrochemicals,
Distribution and Construction Systems. It operates several production
and commercial companies through strategic alliances of recognized
prestige and that are leaders in their respective markets.
Project Ethylene XXI will comprise (i) the acquisition, at competitive
conditions, of ethane from Pemex Gas for a period of 20 years, (ii) the
construction of a cracker unit that will use the ethane acquired as
feedstock for the production of 1 million tons/year of ethylene, (iii)
the construction of three integrated polymerization units for the
production of 1 million tons/year of polyethylene.
The investment initially estimated for its implementation is up to US$
2.5 billion over the course of 5 years, with shareholders planning to
adopt a project finance model, with at least 70% financed through debt
and the remaining 40% with shareholders" own capital. Braskem"s board
of directors has until December 2010 to come to a final investment
decision.
Mexico currently imports over 1 million tons/year of polyethylene.
Project Ethylene XXI integrates and complements Braskem"s strategy to
become a resins leader in the Americas.
