Mexichem expects rapid growth in 2012

By Stephen Downer
Correspondent

Published: January 20, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers, Construction, Pipe/Profile/Tubing

MEXICO CITY (Jan. 20, 10:25 a.m. ET) — Mexican PVC pipe and resins maker Mexichem SAB de CV, which in November made a hostile takeover bid for Dutch counterpart Wavin NV, says it expects sales of $4.3 billion this year, up 13.2 percent from 2011, regardless of whether the Wavin and other potential deals are cemented.

The Tlalnepantla, State of Mexico, company, whose other operations include hydrofluoric acid, chlorine and caustic soda production and fluorite extraction, had 2011 sales of $3.85 billion, up 34 percent from 2010, it said Jan. 18.

The expected increases in sales and EBITDA in 2012 “will be a result of projects announced in 2011, in addition to the organic growth of our businesses, and do not take into consideration possible acquisitions by the company,” Mexichem said in a statement on the Mexican Stock Exchange Web site where its posted its preliminary annual results for 2011.

The global economic crisis has “given Mexichem new opportunities and challenges and allowed us to consolidate our markets and strengthen our business,” CEO Rafael Dávalos said in the statement.

According to the company, the 34 percent sales boost in 2011 was due primarily to its acquisition of resins maker Policyd Plásticos SA de CV, PVC pipe maker Plásticos Rex SA de CV and compounder AlphaGary Corp. of Leominster, Mass.

Mexichem, Latin America’s largest manufacturer of PVC pipe, made an initial bid of 8.5 euros per Wavin share in November, improved the offer to 9 euros in December and then again to 10 euros later in the month, when finally Wavin granted due diligence access to the Mexican company.

Mexichem’s latest offer values Wavin, Europe’s largest pipe maker, at 500 million euros ($646 million at today’s exchange rate).


Comments

Mexichem expects rapid growth in 2012

By Stephen Downer
Correspondent

Published: January 20, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Residents ask court to close pipe maker

November 21, 2014 3:22 pm ET

Residents living by National Pipe & Plastics Inc.'s new factory in an industrial zone of Endicott, N.Y., say the facility has “devastated the...    More

Image

Small is beautiful in Nissei's newest press

November 21, 2014 2:14 pm ET

Responding to customer demand for flexibility, Japanese plastics-equipment manufacturer Nissei Plastic Industrial Co. Ltd. is demoing a caster-...    More

Image

Three advancements have driven injection molding technology

November 21, 2014 6:00 am ET

Injection molding technology has made major advances in the last 25 years, from largely a world of shoot-and-ship to doing as much as possible at the ...    More

Image

Renners leaving Sumitomo (SHI) Demag

November 21, 2014 10:01 am ET

Christian Renners is leaving injection molding press manufacturer Sumitomo (SHI) Demag Plastics Machinery GmbH, the company announced Nov. 21.    More

Image

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.
More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events