Mexichem and OxyChem form ethylene JV

By Stephen Downer
Correspondent

Published: November 1, 2013 1:01 pm ET
Updated: November 1, 2013 5:21 pm ET

Image By: Mexichem Mexichem financial thumbnail

Related to this story

Topics Materials, Joint Venture, Materials Suppliers
Companies & Associations Occidental Chemical Corp.

MEXICO CITY — Mexican PVC and specialty chemicals maker Mexichem SAB de CV and Occidental Chemical Corp. have formed a $1.5 billion, 50-50 joint venture to build an ethylene cracker with an annual capacity of 1.2 billion pounds at an OxyChem complex in Ingleside, Texas, as well as pipelines and storage in Markham, Texas.

The companies announced Oct. 31 that construction will start in mid 2014 and commercial operations in the first quarter of 2017.

"Essentially all" the ethylene produced by the cracker will be used to make vinyl chloride monomer, using existing VCM capacity at the Ingleside site, they said. "VCM will be delivered to Mexichem to produce [PVC resin] and PVC piping systems."

The cracker will strengthen Mexichem by enabling it to take advantage of competitive energy and feedstock costs in the United States, a result of shale gas development, said Mexichem Chairmn Juan Pablo del Valle Perochena.

The "high degree of integration" between the two companies will create "highly competitive assets on a global basis," Chuck Anderson, OxyChem's president, added.

According to the news release, Los Angeles-based OxyChem, a wholly owned subsidiary of Occidental Petroleum Corp., will build and operate the cracker. OxyChem claims to be the world's largest VCM producer.

The cracker joint venture is the second involving a Mexican company to be announced in the past three years. In March 2010 Brazilian petrochemicals giant Braskem SA and Mexico's Grupo Idesa SA de CV formalized an agreement with Pemex Gas y Petroquímica Básica to build a $2.5 billion petrochemical complex, called Ethylene XXI, in Coatzacoalcos, which will include an ethylene cracker and three polymerization plants. Production at that site is scheduled to start in late 2015.


Comments

Mexichem and OxyChem form ethylene JV

By Stephen Downer
Correspondent

Published: November 1, 2013 1:01 pm ET
Updated: November 1, 2013 5:21 pm ET

Post Your Comments


Back to story


More stories

Image

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is sc...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

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

More Events