NPE ’15: Mexico Ethylene XXI 91% complete, set for Q4 start-up

INTERVIEW article by Jessie Waldheim

ORLANDO, Florida (ICIS)–Ethylene XXI, Braskem IDESA’s ethylene and polyethylene (PE) plant project in Mexico, is 91% complete and on schedule for start-up in Q4 2015, an executive for the joint venture said on Tuesday.

“Start-up will be some day during the last quarter,” said Jorge Barreda Vazquez, commercial director for Braskem IDESA. He delivered his remarks on the sidelines at the National Plastics Exposition (NPE).

Ethylene XXI, a 75:25 joint venture between Brazil-based Braskem and Mexico-based IDESA, includes 1.05m tonne/year ethane cracker, two high density PE (HDPE) units of 400,000 tonnes/year and 350,000 tonnes/year, and a 300,000 tonne/year low density PE (LDPE) unit.

Major pieces of the project are already in place, while work continues on connections, wiring and finalising the build, Barreda said.

Once production from the cracker is established, the derivative units can begin start-up within 15 days, Barreda said.

All of the ethylene from the facility will be used for PE production, which will be marketed primarily in Mexico. Braskem IDESA also is establishing logistics to be able to move the product quickly to domestic customers.

“The idea is to commercialise as much as we can in the Mexican market,” Barreda said, nothing however that at the beginning product will be exported as penetration in the domestic market is achieved.

“We still don’t know how much product we will export,” he said.

Barreda estimated that PE demand in Mexico is currently 1.9m tonnes/year, but cautioned that US producers will likely defend their market position in the country.

“There is room in the market, but we know we cannot take all the volume,” Barreda said.

Barreda expects the Ethylene XXI project, once online, can help grow Mexico’s manufacturing economy and spur PE demand.

“I think the fact that it will be there will somehow promote other growth in the future,” he said.

NPE runs through Friday in Orlando, Florida.