Braskem Idesa announced on June 5th the approval of a line of credit in the amount of USD$ 700 million by the Brazlian National Economic and Social Development Bank - BNDES to finance the construction of the largest petrochemical complex being developed in the Americas: Braskem Idesa- Etileno XXI Project.
These funds come in addition to the amounts already approved by the Interamerican Development Bank (IDB) in the month of April, the International Finance Corporation (IFC), an organization that belongs to the World Bank Group, and the Italian credit bureau - SACE, both in May.
The group of financial institutions will also include Mexico's development banks, BANCOMEXT and NAFINSA- Nacional Financiera, and commercial whose loans are subject to the completion and closing of the formal documentation.
The loan will be granted to Braskem IDESA SAPI, the joint venture controlled by the Brazilian Braskem, S.A. and with a relevant participation of the Mexican group IDESA in order to build and operate a petrochemical complex that will have a capacity of 1 million tons of polyethylene, through an ethane cracker and three polymerizations plants (two high density polyethylene and one low density polyethylene).
Etileno XXI Project, located in Nanchital, Veracruz, Mexico, continues to progress within schedule, land movement and site preparation works are 70% completed and the civil construction started on may 18th with the first foundations.
About 50% of the critical equipment was purchased and there are 2,100 people currently working on the project. It is expected to generate over 9,000 jobs during its peak construction point in the years 2013 and 2014.
Once operations begin in 2015 the creation of 3,000 direct and indirect permanent jobs is foreseen.
Polyethylene (PE) is a key input in the manufacture of a wide range of products from the following industries: construction, automotive, electronics, agricultural, food and beverage, and packaging.
Created in 2009, Braskem Idesa is a joint venture between Braskem SA (Brazil), the largest petrochemical company in the Americas and Grupo Idesa, a leading Mexican petrochemical company.