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Braskem and Idesa: Ethylene XXI Project

Created in 2010, Braskem Idesa is an association in which Braskem, the largest producer of thermoplastic resins and leader in the Americas, participates; and Grupo Idesa, one of the main Mexican business groups. Together, the companies are leading the "Ethylene XXI" project, focused on the development and implementation of a petrochemical complex for the production of polyethylene in the city of Coatzacoalcos, in the state of Veracruz. The investment reached US$ 5.2 billion and will maintain an annual production of 1 million 50 thousand tons of High and Low Density polyethylene, which began in early 2016.

Braskem and Idesa were the winners of the tender promoted by Pemex Gas - a state-owned company in Mexico for the acquisition of raw material (natural gas) - under competitive conditions for 20 years. The input will be used in a cracker with a capacity of 1 million 50 thousand tons per year of ethylene integrated into three polymerization units for the production of 750,000 tons per year of High Density Polyethylene (HDPE) and 300,000 tons per year of Low Density Polyethylene (LDPE).

Social and economic development

The Braskem Idesa Complex represents an important progress for the Mexican petrochemical industry because it adds value to the entire productive chain in the country, creating opportunities for social and economic development since the Mexican trade balance must be benefited by the significant decrease in the importation of polyethylene, in addition to the generation of employment.

During the construction phase of the complex, approximately 8,000 jobs were generated in the operation phase. In 2015, around 800 direct jobs and more than 2,200 indirect jobs were generated.

Corporate Structure

The Braskem Idesa association holds 75% of Braskem's stake, while Idesa is a partner of Braskem in the project and holds 25% of the stake. The companies joined specific experiences and knowledge to create an integrated petrochemical complex for the production of polyethylene.

Awards

Braskem Idesa has been characterized not only by its commitment to its business but also by its social commitment and its partners; for this reason, different institutions have recognized it on several occasions:

In 2012, during the "Project Finance Awards 2012" the "Americas Petrochemical Deal of the Year" is achieved.

In the same year, Project Finance Magazine granted the "Petrochemical Deal of Year 2012" award.

In 2013, Compañía de Talentos - a consulting company in Human Resources - and NexTView People recognized Braskem Idesa as the "Sixth Dream Company of Young Mexicans".

The National Association of the Plastics Industry (ANIPAC) awarded in 2014 a Certificate as "Active Associate Member of the Executive Committee 2014- 2016".

"IHS Spectrum Excellence Award" awarded in 2015. The award recognizes the challenges that Braskem Idesa had for the construction of the petrochemical complex for the production of Polyethylenes: feasibility of building a world-scale petrochemical complex in Mexico, projecting the cost of the project in advance, the world market demand planning for the next 20 to 30 years with the aim of accurately assessing the company's profitability and promoting sustainability through the use of the best engineering practices and state-of-the-art technologies.

Likewise, the National Chemical Industry Association (ANIQ) presented Braskem Idesa with two awards highlighting the best practices in the field of comprehensive responsibility. Braskem Idesa was recognized in the "Relationship with the Community" category in the branches of "Health" and "Education", through the corresponding programs that the company executes in the local communities.

Braskem Idesa obtains the "Industrial Safety and Sustainability" Award granted by DUPONT. This award recognizes Braskem Idesa in industrial safety due to the company's control measures in the development of its petrochemical complex under construction in Coatzacoalcos, Veracruz. Braskem Idesa, won the majority of votes over companies worldwide, thanks to the statistics that place it as a company with record rates referring to its high safety index, within the complex.

In July 2016 Braskem Idesa is recognized as the merit award in the industrial category of Global Best Projects.

The award is granted by the Engineering News-Records Association which awards excellence in design and construction throughout 2015 around the world. The winners of the Global Best Projects 2016 award are selected by an independent jury made up of industry specialists with high international experience. The criteria include Safety, Innovation, Contribution to the Global Community, Aesthetic Quality and Labor, with special emphasis on the global diversity of the work team.

The award was received in October 2016 in New York City by Roberto Bischoff (then General Manager) and Stefan Lepecki (then Project Director at Braskem Idesa).

In December 2016, the Odebrecht Group granted Braskem Idesa with the Destaque (Outstanding) Award, which honors those who stand out with unique projects that have a positive impact on the Organization.

Braskem Idesa achieved recognition thanks to the initiative "Opening of the Braskem Idesa Petrochemical Complex", which contains the strategy, planning, and dedication required to carry out the event that marked the beginning of operations at the Plant. The project competed with more than 150 works and was positioned as a winner in the "Image" category, thanks to its originality and which reinforced the ties between Brazil and Mexico.

Braskem Idesa is currently on the list of active members of several associations:

  • APLA (Petrochemical and Latin American Chemical Association)
  • ANIPAC (National Plastics Industries Association)
  • ANIQ (National Chemical Industry Association)
  • AMEE (Packing and Packaging Association)
  • CAMEBRA (Chamber of Commerce Mexico Brazil)
  • CANACINTRA (National Chamber of the Transformation Industry)

MEET BRASKEM

Working in the chemical and petrochemical sectors, Braskem stands out in the global scenario as the largest producer of thermoplastic resins in America and one of the largest in the world. Its production is focused on the thermoplastic resins of polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC), in addition to basic chemical inputs. Together, they make up one of the most complete portfolios of the market by including differentiated products, produced from renewable raw materials.

The company has several industrial units that are concentrated in Brazil, the United States, and Germany; countries where the company also maintains offices to conduct its business. In addition, Braskem has commercial bases in countries of South America, North America, Europe and Asia

Click here to learn about Braskem in the World.

BRASKEM IN FIGURES

GROSS INCOME
BRL 54.1billion (USD 16.3 billion)
EXPORT INCOME
BRL 20 billion (USD 8.5 billion)
NET INCOME
BRL 47.3 billion (USD 143 billion)
INNOVATION AND TECHNOLOGY EXPENSES
BRL 230 millions (USD 98 million)
EBITDA
BRL 9.4 billion (USD 2.8 billion)
INVESTMENTS
BRL 2.4 billion (USD 714 million)

MEET IDESA

Idesa is one of the most important petrochemical companies in Mexico. Its main activities are focused on the production, distribution, and commercialization of chemicals, petrochemicals and construction products, as well as the operation of a maritime terminal in the port of Veracruz. It has a history of 60 years of experience throughout which it has been able to excel in technology, petrochemical, safety, environment, thanks to its operational experience and its team's commitment. To know more about Idesa, visit www.grupoidesa.com

  FY 2014 (USD million) Accumulated to September 2015 (USD million)
Income 675 million 450 million
Export Income 74 million 46 million
Innovation & Technology Expenses 2 million 1 million
EBITDA 72 million 62 million
Investments 36 million 24 million