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Mexico's Pemex expects joint venture despite Mexichem pullout
November 27, 2012 / 7:20 PM / in 5 years

Mexico's Pemex expects joint venture despite Mexichem pullout

MEXICO CITY, Nov 27 (Reuters) - Mexico’s state oil monopoly Pemex said on Tuesday it expects to fulfill a joint venture with Mexichem, despite the plastic pipe maker announcing it was abandoning the deal because of long delays.

Pemex Chief Executive Officer Juan Jose Suarez Coppel said in a radio interview that its venture with Mexichem to produce vinyl chloride monomer (VCM), a key chemical used to make plastic pipes, is a priority for the state-run giant.

Suarez Coppel said he hoped that “at some point this can be brought up to the (Pemex) board and a vote can be taken, finally.”

A Mexichem representative was not immediately available for comment.

Last week, Mexichem told the Mexican stock exchange that it had given up on the venture with Pemex and instead would focus on a plan to extract and sell its own products and pursue opportunities outside the country to produce VCM.

Mexichem has been expanding 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 looking at a $1 billion venture with Occidental Chemical Corp, known as Oxychem, to build a Texas-based facility to produce ethylene by 2016.

Also on Tuesday, Mexichem said it had won a fluorite mining concession in the northern state of Coahuila with “potential reserves” of 4.5 million tonnes, according to a statement filed with the Mexican stock exchange.

Fluorite is a mineral used in smelting and in the production of certain glasses and enamels.

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