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Braskem Idesa Produces First Batch of Polyethylene in Mexico

Source: www.gulfoilandgas.com 4/7/2016, Location: South America

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Braskem announces that Idesa Braskem, its joint venture with the Mexican group Idesa, reached a major milestone with the production of the first batch of polyethylene petrochemical complex in Mexico.

This milestone is part of the gradual start-up process started in December with the entry into operation of the utility area, then the cracker in March. After the departure of the first high-density polyethylene plant, which occurred today, the expectation is that the other two polyethylene plants start operating this month. Over the coming months, the goal is to reach 1.05 million tons production capacity of polyethylene on an annual basis.

"With the start of the petrochemical complex operation in Mexico, Braskem demonstrates its ability to perform a major greenfield project, with the added challenge of running it outside," says Carlos Fadigas, President of Braskem. The Petrochemical Complex is in line with Braskem's strategy of internationalizing its operations in the Americas and greater access to competitive raw material base gas.

Located in the state of Veracruz, the complex includes an ethane cracker, integrated with three polyethylene plants, in addition to utility plants (energy, water and steam). The supply of ethane is provided by a 20-year contract with Pemex (Mexico's state oil and gas), at a competitive price, with reference in the North American gas.

Braskem Idesa already has a portfolio of structured customer, consisting of more than 350 companies in Mexico and also several partnerships with distributors to expand market access.

The Petrochemical Complex will help reduce the deficit of the chemical sector in Mexico, which reached US $ 20 billion, according to the National Industry Association of Mexico Chemistry, could have a positive impact on the Mexican trade balance of US $ 1.5 billion and US $ 2 billion per year.

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