MEXICO CITY (Nov. 7, 2:25 p.m. ET) — Mexichem SAB de CV has been given the go-ahead to form a $556 million joint venture with state oil monopoly Petróleos Mexicanos to produce vinyl chloride monomer (VCM), the basic raw material for the production of PVC, it said Nov. 4.
Latin America's largest manufacturer of PVC pipe, vinyl resins and compounds, Mexichem said in a news release that Mexico's anti trust authority, the Comisión Federal de Competencia, had authorized the deal, which will require the modernization of several plants.
Mexichem is based in Tlalnepantla, close to Mexico City. It published the news on the Mexican Stock Exchange Web site and added that the agreement with Pemex will contribute towards modernizing Mexico's petrochemicals sector.