The Largest Olefins Petrochemical Complex
Braskem entered into its first joint venture with the Mexican group Idesa, joining the Ethylene XXI project, the company's main greenfield project abroad. The project will receive investments of US$3 billion to produce annually 1.05 million tons of polyethylene made from ethane, which uses natural gas as raw material. This is the biggest private investment by a Brazilian company in Mexico.
The project's core objective is to meet the demand from the Mexican market, which currently imports 1 million tons of polyethylene annually. Located in the Coatzacoalcos Petrochemical Complex in the city of Nachital, state of Veracruz, the new project is scheduled for start-up in early 2015. The project is strategically located in an area with easy access to highways, ports and railroads, facilitating the distribution of the product within Mexico and abroad, in addition to the potential for the construction of new warehouses.
Braskem and Idesa hold 65% and 35% interest, respectively, in the project. Pemex Gas Y Petroquímica Básica will supply the raw material for the petrochemical complex. This includes associated gas, which will be supplied for 20 years at competitive terms and will be used as the raw material in a cracker plant with the capacity to produce 1.05 million tons of ethylene annually, integrated with three polymerization units for the production of 750,000 tons of HDPE and 300,000 tons of LDPE per year. The construction of the complex will generate 8,000 jobs, and the start-up of the plants, 3,500 direct and indirect jobs. Mexico was chosen for this project because of raw material supplies, continuous growth of the domestic market, excellent location near the US Gulf Coast, and its highly qualified human capital.
The project is in line with Braskem's growth strategy that is based on the diversification of competitive raw material sources, creation of value for shareholders and global expansion.