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

Resin market has consolidated as it matured

November 28, 2014 6:00 am ET

The classic quantity vs. quality debate has played out in the ranks of North American resin makers in the last 25 years.    More

Image

Sipa buys Automa's PET bottle machinery business

November 28, 2014 10:02 am ET

Sipa SpA has acquired the injection-stretch-blow molding (ISBM) equipment business of Automa SpA. No transaction price was disclosed in the...    More

Image

Wipak opens flexible packaging factory in China

November 28, 2014 9:58 am ET

Wihuri Packaging Oy has opened a new flexible packaging plant in Changshu, China.    More

Image

Sluggish global economy won't stop US recovery

November 28, 2014 6:00 am ET

There has been a lot of negative economic news in recent weeks about some of America's largest trading partners. Japan's economy just registered its...    More

Image

'Evolution, not revolution' on the horizon for A. Schulman

November 28, 2014 6:00 am ET

Bernard Rzepka's schedule for his first year as CEO of compounding leader A. Schulman Inc. does not include reinventing the wheel.    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

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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