Braskem, Idesa advance Etileno XXI startup

A joint venture between Brazilian petrochemical firm Braskem and Mexican group Idesa has begun polyethylene production at its US$5.2bn Etileno XXI complex in Mexico, the companies said on Thursday.

The announcement is part of a gradual startup process that began in December with the launch of utility operations followed by the opening of the cracker in March.

Braskem said three high-density polyethylene plants would begin operating at the complex by the end of the month.

"In the following months, the goal is to reach production capacity of 1.05Mt of polyethylene on an annual basis," Braskem said in a stock exchange filing.

Polyethylene is one of the most widely used resins for food and beverage packaging.

Located in Veracruz state, Etileno XXI also includes electric power, water and steam plants.

Braskem and Idesa have secured a 20-year ethane supply contract with Mexico's state-run oil company Pemex at prices pegged to the US gas market.

"The [complex] is fully in line with Braskem's strategy of internationalizing its operations in the Americas and ensuring greater access to competitive gas-based feedstocks," Braskem said.