A Mexican materials joint venture has decided not to rebuild its unit making plastics feedstocks vinyl chloride monomer and ethylene that was the site of a deadly explosion in 2016.
The decision was announced Dec. 20 by the board of directors of Petroquimica Mexicana de Vinilo SA de CV. PMV is a joint venture between Mexican materials firm Mexichem SAB de CV and PPQ Cadena Productiva SL. PPQ is a unit of state-run materials supplier Pemex Etileno.
The explosion in April 2016 at Pemex's Pajaritos complex in the state of Veracruz resulted in 32 deaths and more than 100 injuries. The VCM/ethylene unit, with combined annual capacity of almost 375 million pounds, has been closed since the explosion.
In a news release, officials said that "it is important to mention that Mexichem, PPQ and Pemex Etileno will continue to evaluate the possibility of investing in the future … in businesses related to the existing ones or in other types of businesses."
The JV will continue to produce chlorine and caustic soda at the site, officials added. The decision not to rebuild won't affect Mexichem's earnings guidance for 2017, they said.