The National Bank of Economic and Social Development (BNDES) has approved a loan of $700m for the construction of Braskem Idesa SAPI's Ethylene XXI project in Mexico.
Founded in 2009, Braskem Idesa SAPI is a joint venture between Brazilian petrochemical company Braskem SA and Mexican petrochemical company Idesa Group.
Located in the municipality of Nanchital, Veracruz, the Ethylene XXI project is expected to need an investment of $3bn and come on-stream in 2015.
The funds will be used to construct and operate a petrochemical complex which will produce one million tons of polyethylene by an ethylene cracker.
The money will also be used to build three polymerization plants - two high-density polyethylene and one low-density polyethylene.
Polyethylene is used to manufacture a wide variety of products in the construction, automotive, electronics, agricultural, food and beverage and packaging industries.
Construction work on the project was started on 18 May 2012 and nearly 50% of the equipment for the complex has already been acquired and more than 2,000 people are currently working on the project, according to Braskem.
The project is expected to provide 3,000 direct and indirect permanent jobs upon its completion. The Interamerican Development Bank (IDB), the International Finance Corporation (IFC) and Italian credit agency SACE have also provided finances to the project.