11 November 2012 00:16 [Source: ICIS news]
RIO DE JANEIRO (ICIS)--?xml:namespace>
“The project is progressing well. Site preparation is complete and basic engineering finished. We have also made orders to procure around 50% of all the equipment,” said Jose Luis Uriegas, CEO of Grupo Idesa.
Mexico-based Idesa owns 35% of Braskem Idesa, the joint venture building Ethylene XXI, with Braskem owning 65%.
Uriegas made his comments on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
“One week ago, we also put our first structures in place on site – the racks for the pipes. Previously it had been levelling, piling and work on the foundations,” he added.
Ethylene XXI includes a 1.05m tonne/year ethane cracker, two high density polyethylene (HDPE) plants with capacities of 350,000 tonnes/year and 400,000 tonnes/year, and one 300,000 tonne/year low density polyethylene (LDPE) plant.
The $3.2bn (€2.5bn) financing package for the project is expected to close on 30 November, said Uriegas.
This represents around 70% of the total cost of $4.5bn, which includes construction costs of $3.7bn, plus working capital and interest.
The project is expected to make a substantial dent in
“By 2015, this deficit will be 1.7m tonnes/year, so we are basically supplying a significant part of that with Ethylene XXI,” Uriegas said.
The APLA conference ends on Tuesday.
($ = €0.79)
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