23 February 2010 23:22 [Source: ICIS news]
SAO PAULO (ICIS news)--Brazilian petrochemical giant Braskem will hold a 65% stake in a $2.5bn (€1.8bn) petrochemical project in Mexico it will develop with Idesa, Braskem said on Tuesday.
Braskem had said earlier that it would hold a majority stake in the Ethylene XXI joint venture.
Mexico's Idesa will hold the other 35% stake. However, Idesa's share could change, since Petroleos Mexicanos (Pemex) is considering a minor share in the project, Braskem said.
The petrochemical complex will be built in Coatzacoalcos in the Mexican state of Veracruz.
The project includes a 1m tonne/year ethylene plant. The complex will also have capacity for 450,000 tonnes/year of high density polyethylene (HDPE), 350,000 tonnes/year of linear low density PE (LLDPE) and 200,000 tonnes/year of low density PE (LDPE).
Operations could start in 2015
According to sources, Braskem’s investment in the project will total approximately $1.6bn.
Pemex has a 20-year contract to supply the complex with ethane. will supply the complex with ethane.
The joint venture represents the largest Brazilian investment in Mexico and the largest foreign investment in Mexico’s petrochemical segment in the last 20 years, Braskem said.
Braskem recently entered the Mexican market with the purchase of the polypropylene (PP) assets of Sunoco.
($1 = €0.73)
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