Mexichem To Seek Overseas Growth as Pemex Delays Joint Venture
Mexichem SAB, the chemical maker that has bought more than 15 companies since 2007, has decided to seek international expansion after a proposed petrochemical joint venture with Petroleos Mexicanos has faced delays, the company said today.
Mexichem cited repeated delays by Petroleos Mexicanos, the state oil company, to approve a joint venture to produce vinyl chloride monomer, a chemical intermediate used in making plastic. The company said it “has decided to give priority to it’s vertical integration outside Mexico.”
Mexichem will “continue with its profitable and solid growth strategy despite not having this association,” the company said in a filing sent today to the nation’s stock exchange. The project’s delays hinder the development of Mexico’s petrochemical industry, Mexichem said without offering more details about how it reached the decision.
Petroleos Mexicanos, the world’s fourth-largest oil producer, delayed the approval of the joint venture with Mexichem on Oct. 2 after the company’s board postponed an extraordinary meeting to discuss the transaction. Pemex, as the company is known, hasn’t scheduled a new meeting.
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