Mexichem/OxyChem US cracker construction under way

14 August 2014 22:33 Source:ICIS News

Interview story by Joseph Chang

MEXICO CITY (ICIS)--Mexichem’s 50:50 joint venture cracker project in Ingleside, Texas, with Occidental Chemical (OxyChem) is under way and targeted for completion in the first quarter of 2017, Mexichem’s CEO said on Thursday.

“The cracker project is going very well. We received the permit in May, and the groundbreaking is done. It is funded and happening,” said Antonio Carrillo Rule, CEO of Mexichem, in an interview with ICIS.

“We want to be fully integrated in PVC [polyvinyl chloride] and capture the benefit of low-cost feedstock. If you want to compete and are not integrated, you’re dead,” he added.

The cracker project called Ingleside Ethylene will have 544,000 tonnes/year of ethylene capacity. The ethylene will be used as feedstock to produce vinyl chloride monomer (VCM) at OxyChem’s existing facility at Ingleside.

OxyChem has a VCM capacity of 1.05m tonnes/year at Ingleside, according to the ICIS plants and projects database.

The VCM would be sold and shipped to Mexichem’s PVC operations in Mexico and Colombia.

Ethylene represents around 70% of the cost of PVC resin production, and 50% of standard PVC pipe production, noted Carrillo.

By Joseph Chang