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Mexichem had withdrawn from the JV on Nov. 22, at the time complaining that Pemex had delayed financing the deal.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

Bankruptcy court confirms GSE reorganization plan

July 29, 2014 4:01 pm ET

The U.S. Bankruptcy Court in Wilmington, Del., has confirmed the reorganization plan for geomembranes maker GSE Environmental Inc.    More

Image

Vinyl siding's lead slips, but industry pushing back

July 29, 2014 2:04 pm ET

Vinyl siding continues to be the top cladding choice for home builders and remodelers but fiber cement is gaining ground — at an alarming rate...    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Magna expanding interiors site in Slovakia

July 29, 2014 1:47 pm ET

Magna International Inc. plans to nearly double the size of its manufacturing facility in Trnava, in western Slovakia, to accommodate new automotive...    More

Image

Obituary: Andrew 'A.J.' Janosko

July 29, 2014 12:14 pm ET

WASHINGTON — Andrew “A.J.” Janosko, the former director of trade show operations for the Society of Plastics Industry Inc., died on ...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events