08 November 2013 23:09 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil-based thermoplastic resins producer Braskem expects the construction of the Ethylene XXI petrochemical complex in Mexico to be at least 85% complete by the end of 2014, an executive for Braskem said on Friday.
The $3.2bn (€2.4bn) project – a joint venture between Braskem and Mexico’s Grupo Idesa – will produce 1.05m tonnes/year of polyethylene (PE) from ethane feedstock, and constitutes the biggest private investment by a Brazilian company in Mexico.
“We adjust the numbers on a monthly basis,” said Braskem chief executive officer Carlos Fadigas in an earnings call with investors. “We are trying to reach a slightly better figure for 2014 so we can focus on commissioning and start-up of the complex in 2015.”
At the end of the third quarter, construction of the complex was 48.4% complete, with work currently focussing on the assembly of the cracker’s charge gas compressor, as well as the primary compressor of the low-density polyethylene (LDPE) plant.
Major pieces of equipment have begun to arrive at the port of Coatzacoalcos on Mexico’s Gulf coast, while an additional 250 pieces have been delivered to the site, Braskem said.
The project, which is being financed by a number of Brazilian, Mexican and international banks, received a first disbursement of $1.48bn in July, with a second disbursement expected this month, the company said.
Braskem’s spending in the first nine months of the year reached Brazilian reais (R) 1.70bn ($736m), the company said. Of this amount, 42% – or R716m – was allocated to the Ethylene XXI project, while R836m was invested in maintenance.
($1 = €0.74, $1 = R2.31)
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