Braskem Idesa suspends its polyethylene production in Mexico

Braskem SA reported this Wednesday that its subsidiary Braskem Idesa stopped producing polyethylene in Mexico after the suspension of its natural gas transportation service.

The parent company stated that it has been informed by its controlled subsidiary about the receipt of notification from the National Natural Gas Control Center (Cenagas), the Mexican state body solely responsible for the gas pipelines and natural gas transportation in the region, related to the termination unilateral service of natural gas transportation, an essential energy input for the production of polyethylene in the Petrochemical Complex of Mexico.

Braskem

«As a result, in compliance with safety protocols, Braskem Idesa initiated procedures for the immediate interruption of its operating activities, which may have a material effect on the Company’s operating or financial results, depending on the moment of the stoppage», the parent company said in a statement.

The subsidiary will take the applicable legal measures to protect its rights and find a solution to the problem, and cannot estimate, at this time, the date for the return of its activities.

The parent company will keep the market informed of any developments related to this matter to the extent required by applicable law.