Mexico's Pemex, Mexichem propose $556m VCM JV

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

For more on PVC visit ICIS chemical intelligence

By: James Young

AddThis Social Bookmark Button

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

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index