Anipac encouraged by Pemex deal with Mexichem

By Stephen Downer
Correspondent

Published: January 25, 2013 1:27 pm ET
Updated: January 25, 2013 1:30 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Joint Venture, PVC, Materials Suppliers

MEXICO CITY -- The decision by state oil company Petróleos Mexicanos to form a $556 million vinyl chloride monomer joint venture with Mexichem SAB de CV underscores the new federal government's commitment to the plastics industry, according to a top association official in Mexico.

"This decision demonstrates where the current federal administration stands and shows its commitment to the development of the [plastics] industry," Anipac President José del Cueto Gracia said via email. Anipac stands for Asociación Nacional de Industrias del Plástico AC.

Pemex's board of directors approved the deal with Mexichem, Latin America's largest PVC pipe, vinyl resins and compounds manufacturer, on Jan.16. Less than two months ago, Mexichem withdrew from the project, complaining that Pemex had procrastinated in completing a transaction approved by Mexico's antitrust authority a year earlier.

A senior Mexichem source said the delay was caused by the Pemex union's insistence on high worker levels at the facility in Pajaritos, near Coatzacoalcos. That plant will now undergo extensive modernization.

The Mexichem source said 800 people will work at the complex, roughly half of what the union was demanding.

Pemex uses only 50 percent of the complex's installed production capacity of 400,000 tons a year, industry consultants have said.

In a filing with the Mexican Stock Exchange on Jan. 17, Mexichem said production will increase by nearly 53 million pounds in the joint venture's first year of operation, by about 322 million pounds in the second and by 478 million pounds in the third.


Comments

Anipac encouraged by Pemex deal with Mexichem

By Stephen Downer
Correspondent

Published: January 25, 2013 1:27 pm ET
Updated: January 25, 2013 1:30 pm ET

Post Your Comments


Back to story


More stories

Image

Coal-to-olefins may not be an immediate threat

July 31, 2014 10:56 am ET

China's coal-derived plastics are unlikely to form any substantial impact in the resin market in the near term, as new capacity projects are running...    More

Image

There is no such thing as 'summer break' when you're in the plastics news business

July 31, 2014 10:51 am ET

There's a rhythm in most businesses. The ups and downs of the business cycle paint the big picture. In between, there's the annual schedule that...    More

Image

Finding the true value of mentoring

July 31, 2014 10:45 am ET

There's a common thread when I speak with thought leaders in the plastics industry. Most of them attribute a big part of their success to having a...    More

Bioplastic created using rice starch

July 31, 2014 10:40 am ET

The new transparent, biodegradable material has a high degree of mechanical strength and good thermal resistance.    More

Image

Keep up with China's rapid changes

July 31, 2014 10:33 am ET

In many ways, 1989 was a very special year in history. Plastics News was launched in Akron. Half a world away, China was trying to carry on economic r...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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