MEXICO CITY Nov 22 Mexican plastic pipe maker
Mexichem said on Thursday it was abandoning plans
for a joint venture with national oil company Pemex due to
continued delays by the state-run giant.
Mexichem would seek an opportunity outside of Mexico to
produce vinyl chloride monomer (VCM), an essential chemical used
to make plastic pipes, it said in a statement to the Mexican
Mexichem has been expanding aggressively in international
markets and wants to reduce its need to buy VCM from other
companies, such as Dow Chemical Co.
Mexichem said in August it was eyeing a $1 billion venture
with Occidental Chemical Corp, known as Oxychem, to build a
Texas-based facility to produce ethylene that would be fully
operational in 2016.
Oxychem would use the ethylene to produce about 1 million
tons of vinyl chloride monomer and sell it back to Mexichem
under a long-term supply agreement.