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Mexichem had withdrawn from the JV on Nov. 22, at the time complaining that Pemex had delayed financing the deal.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

Material Insights: PP production issues, preparing for NPE

January 26, 2015 1:38 pm ET

Production problems in Texas add more complication for polypropylene, Entek has new equipment ready to show compounders at NPE and we take a look...    More

Image

J6 Polymers to buy Stepan unit

January 26, 2015 12:22 pm ET

NORTHFIELD, ILL. — Stepan Co. plans to sell its specialty polyurethanes systems business to J6 Polymers LLC in a cash deal.    More

Image

UK legislators debate fracking

January 26, 2015 12:19 pm ET

LONDON — An influential group of members of Parliament has called for a moratorium to be imposed on fracking for shale gas as politicians...    More

Image

Oxo-biodegradable lobby slams 'scaremongering'

January 26, 2015 12:16 pm ET

Single-use plastic carrier bags made from biodegradable material should be exempted from the government’s proposed 5p-a-bag levy in England,...    More

Image

2014 leaves some resin firms in the black while others struggle

January 23, 2015 2:37 pm ET

On the financial side, 2014 was good for Hexcel Corp., so-so for Celanese Corp. and it could have been better for Omnova Solutions.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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 Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events