Mexico's Pemex in $500 million deal with Mexichem

The board of Mexico's Pemex approved a venture between the oil monopoly and conglomerate Mexichem to produce vinyl chloride monomer (VCM), a chemical used to make plastic pipes, resins and paints.

Pemex's go-ahead for the venture, first announced in 2011, follows months of uncertainty about future of the deal. Mexichem has still to sign off on the project, valued at about $500 million.

Pemex said that Mexichem would contribute an undetermined cash amount to upgrade Pemex's Pajaritos petrochemical facilities in the city of Coatzacoalcos, in the Gulf state of Veracruz.

Source: Reuters