For more than half a century, Grupo
Idesa SA has been pioneering developments in the Mexican petrochemical industry, as well as enjoying an active presence in international markets. Founded in 1956, it has grown into a holding company with annual sales of around US$650 million and comprises four distinct divisions: petrochemicals, distribution of chemical products, logistics, and business applications.
The group’s use of state-of-the-art technology in product development has made it the nation’s petrochemical production leader. Its Technological Development Center opened in August 2007 and aims to generate knowledge that can be translated into competitive advantages, creating value for Grupo Idesa’s clients through innovation, research and development.
“The Ethylene XXI integrated polyethylene production complex is progressing well and is expected to be fully operational by 2015.” Guillermo Gutierrez Saldivar, Chairman of the Board of Directors of Grupo Idesa |
“The main products we produce are ethylene glycol, ethanolamines and phthalic anhydride,” says Guillermo Gutierrez Saldivar, Chairman of the Board of Directors of Grupo Idesa. “Ethylene glycol is used mainly in the textile industry, in PET (polyethylene terephthalate) resins, and for antifreeze in the automotive and aviation sectors. Ethanolamines are used in a large number of industries, particularly cosmetics, detergents, textiles and natural gas treatment, among others. This important product we export to the USA and Europe. Phthalic anhydride is mainly used in the unsaturated polyester resin industry, as well as in paints and plasticizers, and export this to the U.S. and South America.”
In April 2010, Grupo Idesa entered into partnership with Brazil’s Braskem SA to create the largest private petrochemical facility in Mexico. The Braskem-Idesa SAPI joint venture will develop, build and operate an integrated polyethylene production complex in the Coatzacoalcos Petrochemical Complex in the city of Nanchital in Mexico’s Veracruz state.
Known as the Ethylene XXI project, total investment in the development could surpass US$4 billion, and its core objective is to meet Mexican demand for polyethylene (PE) – an essential component in the production of plastic and used in a variety of industries worldwide, such as the manufacture of electrical cables, vehicles, and food containers, among others. It is also the most commonly used plastic in packaging. Owning a 65% share of the project, Braskem’s commitment is the biggest private investment by a Brazilian company in Mexico.
“Since the 90s, the country’s growth caused domestic demand for polyethylene to outstrip the supply of PE by Pemex, and so we began importing the shortfall,” says Mr. Gutierrez. “The project is progressing well and is expected to be fully operational by mid-2015.”
The complex will consist of an ethane cracking plant and three polymerization plants that will produce around 1 million tons of polyethylene per year.
Downstream production at Ethylene XXI will come from two high-density polyethylene (HDPE) plants, with capacities of 350,000 and 400,000 tons/year respectively, and one 300,000 ton/year low-density polyethylene (LDPE) plant.
Construction of the new plants will generate between 6,800 and 8,000 jobs. Mexico's state power company CFE has already begun construction of the electricity network that will supply the Ethylene XXI petrochemical project. Once operational, the complex will provide direct and indirect employment for an estimated 3,500 people and reduce Mexico’s reliance on imports.
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