APLA ’08: Mexico’s Idesa delays investments

16 November 2008 21:29  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Mexican petrochemicals producer Idesa has delayed its investment decisions by several months as a result of the economic downturn, chief executive Jose Luis Uriegas said on Sunday.

“We are putting new investments on hold for a few weeks or months because of the financial situation,” he said on the sidelines of the 28th Latin American Petrochemical Association (APLA) annual meeting. “There are a few in the pipeline, and we will revisit them in February or March.”

Idesa is considering two main investments: an expansion of its ethanol oxide (EO) derivatives production and an expansion of newly acquired chemicals distribution business Negociacion Alvi.

The company is also studying construction of an ethylene and derivatives complex based on gas from state-owned Pemex, but Uriegas said this is a long-term project and therefore any investment decision would not be impacted by the current financial crisis.

Idesa has not yet selected a location for the potential EO derivatives expansion. The company could expand its existing EO production in Coatzacoalcos in Mexico’s Veracruz state or build a new plant outside Mexico, or both, said Uriegas.

The expansion of the distribution business would involve organic growth, including the establishment of new branches, and possibly acquisitions in Mexico or Latin America, he said.

Idesa acquired Mexican company Negociacion Alvi in the fourth quarter of last year, he added.

To discuss issues facing the chemical industry go to ICIS connect
For more on ethylene oxide visit ICIS chemicals intelligence

By: Anna Jagger
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly