Mexichem and Pemex resurrect VCM deal

By Stephen Downer
Correspondent

Published: January 17, 2013 4:38 pm ET
Updated: January 17, 2013 4:41 pm ET

Related to this story

Topics PVC, Materials Suppliers

MEXICO CITY -- Mexichem SAB de CV, the largest manufacturer of PVC pipe, vinyl resins and compounds in Latin America, said Thursday it will form a vinyl chloride monomer joint venture with state oil company Petróleos Mexicanos (Pemex) after all, less than two months after withdrawing from the $556 million project.

The joint venture in Pajaritos, Veracruz state, "will allow the vinyl chloride productive chain in Mexico to remain competitive, despite being at a disadvantage in terms of integration and size with its North American competitors," Mexichem said in a Jan. 17 filing with the Mexican Stock Exchange.

"For Mexichem it's an opportunity to face up to the competition through the use of synergies and operating efficiencies in the whole production chain and to reduce our dependence on foreign competitors for the supply of our main raw material."

Mexichem had withdrawn from the JV on Nov. 22, at the time complaining that Pemex had delayed financing the deal.

Now it appears the sole reason for the earlier delay was the imminent change in government. Mexican President Enrique Peña Nieto succeeded Felipe Calderón Hinojosa on Dec. 1 and a new set of senior directors is running the oil company today.

Pemex approved the JV on Jan. 16 at a special meeting chaired by Energy Secretary Pedro Joaquín Coldwell and attended by, among others, Pemex's new managing director, Emilio Lozoya Austin.

As part of the plan, the whole VCM complex in Pajaritos will be modernized, Pemex said.


Comments

Mexichem and Pemex resurrect VCM deal

By Stephen Downer
Correspondent

Published: January 17, 2013 4:38 pm ET
Updated: January 17, 2013 4:41 pm ET

Post Your Comments


Back to story


More stories

Image

RPC expansion provides the space needed for continued growth

September 22, 2014 11:46 am ET

MORGANTOWN, PA. — Success, over time, created a challenge for RPC Bramlage-Wiko USA Inc. in this rural Eastern Pennsylvania town....    More

Image

Delphi buying connector maker Antaya

September 22, 2014 2:25 pm ET

Delphi Automotive plc will buy Antaya Technologies Corp., a Rhode Island company that supplies wire harnesses and other technologies that connect...    More

Image

TenCate materials help new amphibious sport aircraft take off

September 22, 2014 4:13 pm ET

TenCate Advanced Composites is supplying materials used in a new consumer sport plane made by ICON Aircraft.    More

Image

Sometimes the headline doesn't match the story

September 22, 2014 2:56 pm ET

If you want an idea of why some people think plastic packaging is dangerous, check out this story.    More

Image

Material Insights: Spinoffs, expansions for Bayer, DuPont, others

September 22, 2014 2:01 pm ET

DuPont is pressured to do something similar, and several companies announce expansions.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events