29 June 2011 00:52 [Source: ICIS news]
MEXICO CITY (ICIS)--Mexico-based producers Pemex and Mexichem have proposed creating a vinyl chloride monomer (VCM) joint venture (JV), with the goal of increasing production to 400,000 tonnes/year, the company said on Tuesday.
Pemex and Mexichem plan to invest $556m (€389m) in the venture, the companies said.
Under the proposal, the joint venture will increase VCM production through a three-year stage, Pemex said.
Pemex will present the proposal before the Comision Federal de Competencia (Cofeco) for approval. The company expects the proposal to comply with the nation's laws and regulations.
VCM is a feedstock for polyvinyl chloride (PVC). Mexichem is Mexico's sole PVC producer.
($1 = €0.70)
Additional reporting by Al Greenwood and Ron Coifman
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