15 March 2013 03:55 [Source: ICIS news]
MEXICO CITY (ICIS)--Braskem Idessa's Ethylene XXI project and a wave of new US plants will make Mexico's polyethylene (PE) market even more competitive resulting in massive changes in the market, an executive with Pemex Petroquimica said on Thursday.
"We will have a very different competitive situation in three years' time," said Jorge Carrillo, manager of sales for Pemex Petroquimica.
Carrillo made his comments on the sidelines of the Plastimagen plastics conference.
The Ethylene XXI complex is expected to include 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 complex should begin operations in the second half of 2015.
Braskem Idesa, made up of Brazil-based Braskem and Mexico based Grupo Idesa, is building the complex in Coatzacoalcos, Veracruz.
Pemex Petroquimica has always faced strong competition from the US, and it is preparing for that competition to increase, Carrillo said.
Those steps include diversifying the company's portfolio, enhancing its marketing capabilities and strengthening the company's distribution network and relationship with transformers, Carrillo said.
Meanwhile, Pemex Petroquimica will still enjoy the advantage of being a local producer, he said.
Plastimagen lasts through Friday.
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