Braskem Idesa signs contracts to finance petchem plant in Mexico

20 December 2012 12:51 Source:ICIS News

CAMPINAS, Brazil (ICIS)--Braskem Idesa said on Thursday it has signed several contracts to finance the construction and operation of its petrochemical complex, Ethylene XXI, in Nanchital in Mexico.

Several finance agencies will invest $3.2bn (€2.4bn) in the project, Braskem Idesa, a joint venture in Mexico formed by Brazilian petrochemical producer Braskem and Grupo Idesa, said.

Among the institutions that will finance the project are seven official agencies and 10 commercial banks. 

Braskem Idesa said its Ethylene XXI plant will produce polyethylene (PE) to supply Mexican companies and will support the substitution of imports.

The project will have a $3.2bn capital expenditure and a total investment of $4.5bn, it said.

The second phase of construction, which began in November 2012, will be complete in the first half of 2015, it said.

($1 = €0.75)

By Leo Siqueira