Nov. 9 (Bloomberg) -- Braskem SA, Latin America’s biggest petrochemicals producer, and Mexico’s Grupo Idesa SA plan to invest as much as $2.5 billion in a joint venture to supply polyethylene to the Mexican market.

The unit, which will be built in the southeastern Mexican city of Coatzacoalcos, will start operating in 2015 with capacity to produce 1 million metric tons of ethylene and 1 million tons of polyethylene, Braskem said in a statement today. Mexico currently imports more than 1 million tons of polyethylene a year, Braskem said.

Braskem plans to become the largest resins producer in the Americas, Chief Executive Officer Bernardo Gradin said Nov. 3. The Sao Paulo-based petrochemicals maker plans two new projects in Venezuela and is seeking acquisitions in the U.S., he said.

Petroleos Mexicanos, the state-owned oil company, will supply ethane for the Mexican project under a 20-year contract, Braskem said. Braskem said the project is subject to board approval by December 2010.

To contact the reporter on this story: Diana Kinch in Rio de Janeiro at dkinch1@bloomberg.netTo contact the reporter on this story:

Last Updated: November 9, 2009 08:19 EST