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Pemex and Mexichem to Form a $556-million VCM Production Joint Venture

8:52 AM MDT | July 5, 2011 | Natasha Alperowicz

Pemex has announced plans to form a $556-million vinyl chloride monomer (VCM) manufacturing joint venture with Mexichem (Pajaritos, Mexico), a producer of polyvinyl chloride (PVC). Pemex, which is seeking to double its VCM capacity, needs approval for the project from Mexico’s antitrust authorities. Pemex’s VCM capacity will rise to more than 400,000 m.t./year by 2013, a 116% increase compared with 2010, the company says. Mexichem will contribute about 60 % of the investment to create the new company. The project will help Mexichem to reduce its...

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