Home / Knowledge / News / Textiles / Braskem & Idesa to invest US$2.5 bn for Ethylene XXI project
Braskem & Idesa to invest US$2.5 bn for Ethylene XXI project
24
Feb '10
BRASKEM S.A., the largest thermoplastic resins producer in the Americas, and Idesa, one of Mexico's leading petrochemical groups, signed with Pemex, Mexico's state-owned oil and gas company, the investment agreement and raw material (ethane) supply agreement for the installation of an integrated petrochemical project in that country, in which Braskem and Idesa will invest US$ 2.5 billion.

The agreement is being finalized in the presence of presidents Felipe Calderón Hinojosa and Luiz Inácio Lula da Silva at the close of the Strategic Mexico-Brazil Entrepreneurs Forum held on the Mayan Riviera At the event, agreements will also be formalized for the supply of naphtha and basic petrochemicals between Braskem and Pemex.

At the end of 2009, Braskem and Idesa were the winners of the auction held by Pemex Gás e Petroquímica Básica for the acquisition of 66,000 barrels/day of ethane, which will be used as feedstock at the petrochemical complex to be built in Coatzacoalcos, in the Mexican state of Veracruz. The raw material supply agreement is valid for 20 years.

The project involves the production of one million tons/day of ethylene and polyethylenes at three polymerization plans, with operational startup expected in 2015. The initiative should provide significant stimulus for substituting the polyethylene Mexico currently imports, which currently is worth approximately US$ 2 billion/year.

Braskem and Idesa will hold interests in the joint-venture structure adopted for the project of 65% and 35%, respectively. To leverage the project's competitiveness, the partnership will take maximum advantage of the strengths and experiences of both companies.

A strategic minority interest by Pemex in the project as partner is still being analyzed. The Ethylene XXI project represents the reactivation of Mexico's petrochemical industry, an opportunity for adding value to hydrocarbons and the development of human capital and the manufacturing industry.

Another agreement that will also be signed during the meeting will assure the supply by Braskem of the basic petrochemical products propylene and butene to Pemex. The agreement, which is valid for one year, provides for the supply of 34,000 tons of these products. An agreement for the sale of 375,000 tons of naphtha by Pemex to Braskem is also being settled. The formalization of these agreements should also help further strengthen trade relations between Mexico and Brazil.

BRASKEM S.A.

Must ReadView All

Courtesy: Messe Frankfurt

Textiles | On 24th Mar 2017

Over 3341 exhibitors participate in Intertextile Shanghai

More than 3,341 exhibitors from 26 countries and regions participated ...

Courtesy: Bebe

Apparel/Garments | On 24th Mar 2017

Bebe Stores exploring strategic alternatives

Bebe Stores has announced that its board of directors is exploring...

Apparel/Garments | On 24th Mar 2017

Tiruppur garment cluster hopeful of meeting export target

The Tirupur garment cluster is hopeful of meeting its target of...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search