Mexichem formalizes VCM venture with Pemex at Pemex's Pajaritos complex

18-Sep-13

Petrochemicals giant Mexichem S has formalised the establishment of a US$518 mln joint venture with state oil company Petróleos Mexicanos to produce vinyl chloride monomer (VCM) at Pemex's Pajaritos complex, near Coatzacoalcos in the state of Veracruz, as per PlasticsNews. As per a filing with the Mexican Stock Exchange, Mexichem said Pemex will invest US$228 mln in assets in the project while Mexichem will contribute US$90 mln in assets and US$200 mln in capital. The total outlay of US$518 mln will allow the plant to be modernized. "It's important to emphasize that this joint venture will enable the development and greater efficiency of the national petrochemicals industry and guarantee that Mexican capital remains in the country while reducing [Mexico's] dependence on importations and the flow of capital to other countries," Mexichem said.