06 November 2011 19:10 [Source: ICIS news]
BUENOS AIRES (ICIS)--The joint venture (JV) between Mexichem and Pemex plans to reach its production target of 400,000 tonnes/year of vinyl chloride (VCM) by 2014, market sources said on Sunday.
Mexichem will provide capital and chlor-alkali feedstock to the JV, while Pemex will contribute the sole VCM production plant in Mexico, an ethylene cracker and energy cogeneration, according to the sources.
They made their comments on the sidelines of the 31st Latin American Petrochemical Association (APLA) annual meeting in Buenos Aires.
With the JV, VCM production in Mexico will increase from 200,000 tonnes/year in 2011 to 250,000 tonnes/year in 2012, 350,000 tonnes/year in 2013 and 400,000 tonnes/year in 2014.
The Mexican government recently gave anti-trust approval to the JV and unconditionally authorised the increase in VCM production.
Pemex and Mexichem are expected to approve the joint venture in the first quarter of 2012, the sources said.
The joint venture will supply all its VCM to Mexichem’s polyvinyl chloride (PVC) production.
Mexico has a current 600,000 tonne/year VCM deficit. The deficit is expected to increase to 1.1m tonnes/year by 2015, as Mexichem’s PVC production capacity is projected to increase by 500,000 tonnes/year by then, according to the sources.
Pemex and Mexichem plan to invest $556m (€406m) in the venture.
The JV will have its own name, which has not been disclosed, the sources said.
The 2011 APLA conference ends on Tuesday.
($1 = €0.73)
For more on VCM visit ICIS chemical intelligence
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.
|ICIS news FREE TRIAL|
|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|