Pemex JV will not rebuild VCM plant

Mexico

TLALNEPANTLA DE BAZ, December 21, 2017 – Mexico’s state-owned company Pemex and its local partner will not rebuild the Pajaritos vinyl chloride monomer (VCM) plant that was damaged in an April 2016 blast.

On Wednesday, local petrochemicals company Mexichem reported that the board of directors of Petroquímica Mexicana de Vinilo, a joint venture with Pemex, had decided to discontinue the VCM and ethylene businesses. However, the two companies will carry on with their partnership in other areas, according to a company statement.

The move “does not impact Mexichem’s guidance for EBITDA growth for 2017, which is expected to be between 20% and 25% above the USD 884 million reported in 2016,” the statement read.

An explosion at the Pajaritos VCM plant on April 20, 2016 resulted in the deaths of more than 30 people and injuries to around 130. Local residents in the vicinity were also temporarily evacuated.

Mexichem holds a 56% stake in Petroquímica Mexicana de Vinilo, while Pemex holds the remaining 44%.

Read our latest insights on:

• Mexico

Previous

Canacol to exit Ecuador

Next

Sonangol investigates Dos Santos