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Mexichem enters vinyl chloride monomer venture with Pemex

7:43 AM MDT | September 20, 2013 | —Francinia Protti-Alvarez

Petróleos Mexicanos (Pemex; Mexico City) and Mexichem (Tlalnepantla, Mexico) have formally agreed to terms of a previously announced joint venture to produce vinyl chloride monomer (VCM), valued at $518 million. Pemex will contribute assets valued at $228 million, and Mexichem will contribute $90 million in assets and $200 million in cash. The jv will take over and expand Pemex’s VCM plant at the Pajaritos manufacturing complex at Coatzacoalcos. The expansion is expected to reach 24,000 m.t./year during the first year; 146,000 m.t./year in the second...

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