13 March 2013 02:36 [Source: ICIS news]
MEXICO CITY (ICIS)--Mexico's large automobile industry will continue growing quickly in the upcoming years, increasing the demand for plastics, an executive with LANXESS said on Tuesday.
The industry has already been seen to have recovered from the recession.
In 2012, automobile production reached its highest level since at least 2008, according to the Asociacion Mexicana de la Industria Automotriz (AMIA), a trade group that represents automobile producers.
Many of the vehicles produced in Mexico are exported.
Meanwhile, Mexico's light vehicle sales reached 987,747 in 2012, up 9% year on year, according to the Asociacion Mexicana de Distribuidores de Automotores (AMDA), a trade group representing auto distributors in Mexico.
2012 was the third best and strongest year since 2008, according to AMDA.
Automobiles are a major consumer of chemicals, and the American Chemistry Council (ACC) estimates that each vehicle contains an average of $3,297 worth of chemicals, such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.
Mexico's automobile industry should continue growing, said Brendan Dooley, director, sales and OEM (original equipment manufacturers) development, NAFTA (North American Free Trade Agreement) region for LANXESS's high-performance materials segment.
The segment produces nylon compounds.
Dooley was speaking on the margins of the Plastimagen plastics conference.
In fact, LANXESS expects demand for its products from the Mexican automobile industry to grow by double digits in the next 3-5 years, Dooley said. "The trend will continue. We are seeing more and more investment in Mexico."
Plastimagen lasts through Friday.
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|
Asian Chemical Connections