Braskem Idesa, a joint venture between Brazilian producer Braskem (Sao Paulo; www.braskem.com.br) and Mexico’s Idesa (Mexico City; www.idesa.com.mx), is making good progress on its “Ethylene XXI” cracker and PE project. Located in the Coatzacoalcos / Nanchital region in Mexico’s Veracruz state, the complex is on track to begin production in 2015. However, the construction will be obviously more expensive than expected. When the project was announced two years ago, the amount to be invested was USD 2.5 bn (see Plasteurope.com of 16.11.2009). Now the company expects costs of more than USD 4 bn, as South American media report under reference to Roberto Bischoff, CEO of Braskem Idesa.

Braskem Idesa expects to secure a financing package for the project by the first quarter of 2012. According to media reports, about 70% of the cost is expected to be financed with debt.

The joint venture company, owned 65% by Braskem and 35% by Idesa, selected French engineering contractor Technip (Paris; www.technip.com) as the technology supplier for the 1.05m t/y cracker. The integrated complex will also include two HDPE plants with a combined 750,000 t/y capacity and a 300,000 t/y LDPE plant. Technip is also conducting the FEED of the cracker and HDPE plants.

Braskem Idesa selected “Innovene S” technology from Ineos Technologies (Lyndhurst / UK; www.ineos.com) for the HDPE plants and “Lupotech T” technology from LyondellBasell (Rotterdam / The Netherlands; www.lyondellbasell.com) for the LDPE plant – see Plasteurope.com of 15.11.2010 and 14.02.2011.

The project, which will help Mexico cut its PE imports, will receive ethane feedstock from Mexico’s state-owned Pemex (Mexico City; www.pemex.com) under a 20-year contract.