Despite some adverse conditions facing Mexico at the moment (cough Trump cough), the Mexican government has kept up its steady promotion of the country as a destination for foreign direct investment. A couple of high-profile investments in the automotive industry appear to have been waylaid by threats or uncertainty over the future of NAFTA, but overall large foreign companies with long-term strategies for the Americas continue to establish new Mexico operations or expand existing ones. Within this context, we once again took a look at the less-heralded flip side of Mexico FDI – investment by Mexican companies in other countries. Read the rest of this entry »
Posts Tagged Mexichem
We were positively gobsmacked when the news hit that the British electorate had voted to leave the European Union in the UK referendum held June 23, 2016. We should add that when new Prime Minister Theresa May subsequently named Boris Johnson Foreign Secretary, we were whatever comes after gobsmacked in the hierarchy of silly English expressions, but we’ll save that topic for another post. Not being stuffy pensioners in the Midlands, our prime concern over Brexit is the historical context for peace and prosperity in a unified Europe, and by extension the world. After all, the history of Europe is largely the history of thousands of years of uninterrupted warfare until the EU’s monumental attempt to pacify the region through cooperation following World War II. A handful of billion Euros here and there seems like a small price to pay for the opportunity for peace in Europe, but hey, what do we know here in the tropics. In any case, as British millennials figuratively jumped off the roof in the aftermath of the vote, we naturally began wondering how Brexit would affect us in Mexico, despite being neither British nor European.
In past posts, particularly comparing Mexico to Brazil, we have noted how Mexico historically has shied away from seeking a high profile role in the international community. As a top-20 economy and major exporter, Mexico could be forgiven for raising its aspirations, as Brazil seemed to do during its recent run in the economic limelight. Particularly with President Peña’s major push to attract foreign investment over the past two years, now might be the time for some calculated moves to increase Mexico’s international role. If the current administration harbored any notions of this type, however, they are likely stalled for the moment, what with recent news coverage dominated by tales of corruption and violence. Nonetheless, as Mexican political leaders continue to treat foreign adventures with trepidation, Mexican businesses appear to be finding ever more sure footing abroad. Read the rest of this entry »
Mexico’s state-owned oil and gas monopoly Petroleos Mexicanos (Pemex) announced recently that it’s board of directors finally approved a proposed joint venture with Mexican chemicals and plastics giant Mexichem to produce vinyl chloride monomer (VCM), a key component for the manufacture of polyvinyl chloride plastic, commonly known as PVC.
The long-suffering proposal first required approval by Mexico’s Federal Competition Commission (CFC), which it obtained over a year ago, and then was stalled for months as the national oil workers union picked over the details undecided. Mexichem began making noises about bagging the project late last year, apparently prodding the union to get off the schneid and clear the way for approval by the board. The actual venture is reportedly planned as a collaboration between Mexichem and Pemex petrochemical subsidiary Pemex Petroquímica. Under the terms of the deal reported in local media, Pemex will contribute US$235 million worth of production infrastructure at its Pajaritos, Veracruz petrochemical complex, and Mexichem will provide approximately US$320 million worth of cash and assets to bring the new plant into operation. The new company is planned to be formally constituted this year. Read the rest of this entry »
Despite a mopey world economy that just can’t seem to snap out of it, Mexico’s mining industry looks to be headed for another banner year in 2011. The Mexican Mining Chamber (Camimex) reported a record high of US$13.9 billion in production value for 2010, leading the sector to outstrip tourism among the country’s leading industries. The current year is expected to exceed last year’s performance, with growth through the first half set at over 17% and still on pace through August, according to the National Statistics Institute (INEGI). High demand for precious metals and certain industrial minerals has in turn led to a flurry of investment that should keep production strong for the foreseeable future. Camimex is projecting total mining sector investment of US$4.7 billion for 2011, which would represent a healthy 42% increase from 2010 levels. Read the rest of this entry »