09 April 2012 21:26 [Source: ICIS news]
SAO PAULO (ICIS)--Braskem will receive a $600m (€456m) loan from the Inter-American Development Bank (IDB) to help finance the Ethylene XXI project in Mexico, Braskem said on Monday.
Braskem-Idesa, the joint venture with Mexico’s Idesa group, will build an integrated petrochemical complex in Nanchital, Mexico.
The project includes a cracker with an expected ethylene capacity of 1.05m tonnes/year. Planned downstream production includes two high density polyethylene (HDPE) plants with capacities of 350,000 and 400,000 tonnes/year and one 300,000 tonne/year low density polyethylene (LDPE) plant.
The project is expected to be operating by mid-2015 and is expected to cost at least $2.5bn.
Mexico’s Pemex will supply the ethane for the project, the IDB said.
The IDB said the Ethylene XXI project is the largest foreign direct investment by a private Brazilian firm in Mexico.
It is the largest project ever undertaken jointly by both countries, the IDB said, and is expected to generate $200m/year in tax revenues.
The project is expected to create a peak of 9,800 jobs during construction and 3,000 direct and indirect jobs when it begins operations in 2015, the IDB said.
Headquartered in Washington, DC, in the US, the IDB was founded in 1959 as a partnership between 19 Latin American countries and the US. It is now owned by 48 member states, of which 26 are borrowing members in Latin America and the Caribbean.
(Additional reporting by Brian Ford and Anna Jagger)
($1 = €0.76)
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