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, Materials Suppliers, Joint Venture
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

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying...    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-...    More

Image

Evonik sees clear growth opportunities with new Plexiglas Resist resin

October 17, 2014 6:00 am ET

Evonik Industries AG presented a new specialty molding compound during Fakuma in Friedrichshafen with which it plans to exploit the growing demand...    More

Image

Teknor adding second UK production line

October 17, 2014 9:25 am ET

Teknor Apex Co. will add a second thermoplastic elastomer production line at its United Kingdom plant by the end of 2015 to meet growing demand.    More

Image

PolyOne denies report it's bidding for Klöckner Pentaplast

October 16, 2014 11:44 am ET

UPDATED — Compounding leader PolyOne Corp. is denying a report that it bid as much as $2 billion for film and sheet major Klöckner Pentaplast Gr...    More

Market Reports

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 million dollar 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

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

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

More Events