Mexican PVC pipe, vinyl resins and compounds manufacturer Mexichem is scrapping plans for a petrochemical joint venture with Petroleos Mexicanos (Pemex) due to continued delays by the state-run oil company.
Mexichem blamed the decision on continued delays by the state-run giant.
The proposed joint venture, first announced in June 2011, had been waiting for Pemex board backing since it got antitrust approval in October this year. The project would have increased the vinyl chloride monomer (VCM) capacity at Pemex's Pajaritos plant from 200,000 tonnes/year to around 450,000 tonnes/year.
Mexichem said it 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 stock exchange.
Mexico City-based Mexichem is the largest producer of PVC resin in Latin America.