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Latino Daily News

Friday December 21, 2012

Petrochemical Project in Mexico Raises $3.2 Billion for Consortium

Petrochemical Project in Mexico Raises $3.2 Billion for Consortium

Photo: Ethylene XXI (Technip)

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Brazilian-Mexican consortium Braskem-Idesa said it has reached a $3.2 billion financing deal for its Ethylene XXI petrochemical project in Mexico.

The accord, which the consortium is calling “the largest project finance transaction in the history of the petrochemical industry in the Americas,” was signed with 17 state-run and commercial banks from several countries.

Sumitomo Mitsui Banking and international law firm White & Case served as Braskem-Idesa’s financial advisor and legal counsel, respectively.

The consortium was created in 2010 as a joint venture between Brazil’s Braskem, the largest manufacturer of thermoplastic resins in the Americas, and Grupo Idesa, a leading Mexican petrochemical producer.

Ethylene XXI - which is being built in Nanchital, a town in the Gulf coast state of Veracruz - will be a private petrochemical complex for the production of polyethylene.

Once it enters into operation in 2015 the complex will produce 1 million tons of polyethylene and replace up to $2 billion worth of imports, the consortium said.

The project will create 9,000 temporary jobs in the construction phase and some 3,000 permanent direct and indirect jobs.

Braskem operates 26 plants in Brazil, while Idesa has more than 50 years of experience in the domestic market and an active presence in international markets.