The Brazilian Development Bank has approved a $700 million line of credit for Braskem Idesa's Ethylene XXI project currently under construction in Mexico, Braskem said Monday.
Braskem Idesa is joint venture between petrochemical companies Braskem in Brazil and Idesa in Mexico.
Braskem said in a statement that the loan came on top of $600 million of credit already secured from the International Finance Corporation and the Interamerican Development Bank. It added that construction was progressing in line to start operations in 2015.
"The earthwork and site preparation are 70% completed, and construction began on May 18 with the primary foundations," Braskem said. "Nearly 50% of the critical equipment necessary for the complex has already been acquired."
Braskem Idesa Ethylene XXI, at an estimated cost of $2.5 billion, is the largest petrochemical complex currently being built in the Americas. Located in Coatzacoalcos, Veracruz state, the complex will include an ethane-fed cracker with capacity of 1 million mt/year and three polyethylene plants with a combined production of 1 million mt/year. The plan is to have one low density polyethylene plant and two high density polyethylene plants.
Feedstock for the project has been secured through a long-term agreement with Mexico's Pemex.
Mexico is short close to 1 million mt/year of polyethylene and imports nearly 60% of its resin consumption, according to industry estimates.
