News Post
Mexichem plans to spend $800m on new projects this year
Mexican petrochemical producer Mexichem is reportedly planning to build new facilities and enhance its existing plants this year with an investment of $800m.
Mexichem CEO Antonio Carrillo was quoted by Reuters as saying: "This is the most important year for Mexichem in organic investment."
The company operates 122 manufacturing facilities, mines and laboratories in over 30 countries worldwide.
The investment budget for this year represents a three-fold increase on Mexichem's spending last year.
As part of the investment, around $400m will be used for the company's ethylene plant in Texas.
Mexichem will use approximately $100m in projects that are being developed in partnership with state oil company Pemex.
The remaining $300m will be used for organic growth opportunities, Carrillo added.
The petrochemical firm plans to pursue acquisitions in South and North American and Asian markets.
"We're a conservative company financially, which means that since we bought a lot last year, we're in the digestion process, reducing debt," Carrillo added.
For the first quarter, Mexichem recorded a 9% increase in revenues to $1.4bn, compared to $1.32bn last year. Earnings before interest, taxes, depreciation, and amortisation remained the same, at $198m.
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