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July 21, 2008 02:00 AM

Mexichem purchases Peru geotextiles unit

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    PVC and specialty chemicals maker Mexichem SAB de CV has acquired the geotextiles operation of Lima, Peru-based Comindustrias del Perú.

    Mexichem gave no financial details about the deal in its June 11 filing with the Mexican Stock Exchange.

    However, the documents did say that Mexico City-based Mexichem now leads the geotextiles sector in Peru and can provide more geosynthetic products and services to civil engineers in Latin America.

    Generally made from polypropylene or polyester, geotextiles are permeable fabrics used to strengthen soil in road making.

    Separately, in a statement to the stock exchange June 19, Mexichem said it had made a deal worth several billion dollars to sell Dallas-based Occidental Chemical Corp. ``a large proportion'' of its vinyl chloride monomer requirements for the next five years.

    As part of the agreement, Mexichem will supply Occidental with chloride, used to make PVC resins. Occidental then will supply Mexichem with PVC for two years.

    ``This contract represents for Mexichem a guaranteed supply of the main raw material used to make PVC at a competitive price and will allow us to maintain our leadership in Latin America,'' Mexichem said in the statement.

    The firm plans to invest $1 billion for acquisitions in the Americas during the next few years.

    ``We are now a global Mexican company with a presence throughout the American [continents], which sets us in a unique position for a Latin American company,'' Mexichem said.

    In late February, the company reported net sales of $2.1 billion for 2007, up 122 percent from 2006.

    The construction industry was key in that growth. ``Emerging markets have a wonderful chance to become the drivers of the global economy,'' the company added.

    Mexichem reached an agreement with Brazil's Fiberweb plc in April to buy Bidim Industria e Comercio de Näo-Tecidos Ltda., which makes unwoven products for geotextiles.

    Located near São Paulo, Bidim employs 123. The company had sales in 2007 of $33 million. Its main markets are in Brazil, Argentina, Uruguay and Paraguay.

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