Braskem’s Mexican subsidiary Braskem Idesa is planning to invest $150mn to expand its petrochemical plant by 2025 in Mexico. The expansion will allow Braskem to receive its ethane from its import terminal, instead of relying on Pemex for half its supply and to expand its production by 20%. The announcement came after the company reached an agreement with Pemex regarding a long lasting ethane contract conflict. Braskem Idesa’s CEO Stefan Lepeck said, “We’ve established a new relationship with the government and Pemex, last year was a very important year for Braskem Idesa. We had an important dialog with Pemex, and we finally solved the issue around the supply contract. We have a clear strategy based on this new agreement with Pemex.”
Braskem’s dollar bonds were also stable with its 7.125% 2041s at 109.375, yielding 6.27%. Pemex’s dollar bonds were also stable with its 5.35% 2028s at 93.869, yielding 6.62%.
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