Braskem plans to ramp up investments in Mexico as part of reforms in energy sector

11-Oct-13

Brazilian petrochemical company Braskem plans to ramp up its investments in Mexico as a result of the country's ongoing reforms of its energy sector, as per BNamericas. Roberto Bischoff, head of Braskem's Latin America unit, said the company's US$3.5 bln Ethylene XXI joint venture in Mexico marks only the beginning of Braskem's investment strategy in Mexico. In an interview with El Financiero, Bischoff said that as a result of Mexico's energy reforms, Braskem could increase its investments by 30%. It was not clear if he was referring to annual investments. "The energy reform that has been proposed opens investment opportunities in the petrochemical industry by increasing the availability of raw materials," he said. "We see an opportunity to increase our investments." Bischoff said that Braskem will construct a 150MW power plant to supply Ethylene XXI, an investment of US$150 mln. The company may also install a second plant of the same size."With the energy reforms we have plans to increase this infrastructure, which will also enable us to sell electricity to third parties," he said.