Tag Archives: petrochemicals

Slow December as restrictions tighten

Mexico City returned to red last month on the epidemiological traffic light system, indicating saturation of hospital beds and the highest degree of restrictions on business activity and movement.  The rate of increase in cases of COVID-19 is uneven across the country’s 32 states however overall the spread of the virus continues to increase rather than to decrease.  Despite this, many coastal tourism zones remain in operation and received a substantial number of visitors from within Mexico as well as from the United States during the year-end holiday period.  Mexico has begun to receive and distribute the U.S.-developed Pfizer-BioNTech vaccine, and plans to begin importing the Chinese CanSino vaccine in January. Continue reading Slow December as restrictions tighten

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Electronics: Italian electronics manufacturer OMP Mechtron is constructing a new plant in the western state of Jalisco.  The US$2.6 million site will produce mobile phone components for regional markets in the Americas. (El Financiero, October 24, 2013)
  • Construction: Mexican hydraulic fixture manufacturer Urrea estimates investment this year at up to US$10 million, the company reported.  The maker of bathroom fixtures such as faucets and related finishings invests annually in production line upgrades. (Mexican Business Web, October 25, 2013)
  • Aviation: Mexican low-cost airline VivaAerobus plans aircraft acquisitions worth up to US$5.1 billion over the next eight years.  VivaAerobus is converting its fleet to Airbus aircraft to reduce fuel and maintenance costs, the company reported.  (El Financiero, October 22, 2013)
  • Logistics: Mexican courier Redpack plans to open a new operations center in the central State of Mexico.  The US$7 million facility will boost the firm’s capacity to serve industries such as autoparts, technology and financial services. (Mexican Business Web, October 24, 2013)
  • Food processing: Swiss processed foods giant Nestlé will build a new production plant in Mexico at an estimated cost of US$400 million.  The site, planned to produce milk and formula products, will become the company’s fifth plant in Mexico. (Reforma, October 22, 2013)
  • Apparel: U.S. clothing manufacturer Benefit Apparel will invest US$5 million to open a sewing plant in the western state of Jalisco.  The facility is planned to carry out in-bond (maquila) export manufacturing for brands such as Ross, Forever 21 and Adidas. (El Occidental, October 21, 2013) Continue reading Recent and upcoming investment in Mexico

Mexichem and Pemex to launch PVC joint venture

Resistance is futile
Resistance is futile

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. Continue reading Mexichem and Pemex to launch PVC joint venture