Water Shortages Impact Mexico's Industrial Operations

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Companies are reporting production shutdowns in parts of Mexico due to droughts and water scarcity. On Tuesday, a presentation from Mexico's National Water Commission (Conagua) and Ministry of Environment on the status of the country's water dams shed light on the situation.

Of the 210 main water dams across Mexico, 160 have storage levels below 50%, according to the presentation. Together, these 160 account for 48% of the water storage levels across Mexico's dams. They are followed by 32 dams at storage levels between 50% and 75% that account for 42% of the water levels.

Overall, by June 3 of this year, Mexico's water storage level across its dams was 46.136 million cubic meters, 25% less than the calendar day's historical average. According to the presentation, the 210 water dams currently have 36% of the maximum storage.

According to the presentation, storage at the Cutzamala water system, which supplies Mexico City with roughly 25% of its water, is at 27.5% of its total capacity. The historical average for Cutzamala levels for this time of the year is 58.6%.

Four industrial plants in Altamira, Tamaulipas, have reported shutdowns and force majeure due to water scarcity in the last couple of weeks, according to Industrial Info's Project Database:

• Orbia Polymer Solutions' plastics plant; see plant profile
• Orbia's polyvinyl chloride resins plant; see plant profile
• Chemours' (NYSE:CC) (Wilmington, Delaware) titanium dioxide facility; see plant profile
• Saudi Basics Industries Corporation's (SABIC) (Riyadh, Saudi Arabia) resin plant; see plant profile
• Ineos Styrolution's resin plant; see plant profile

Industrial Info's research suggests the biggest and most relevant operational plants across Mexico were maintaining operations a few days ago, including mining, glass and steel plants, as well as some of the largest pharma and biotech plants. Plants within Mexico's Food & Beverage Industry also were operating normally.

Companies contacted by Industrial Info say they normally have measures in place to use water more effectively. Others use recycled or desalinated water, while some companies have secured water through private concessions for groundwater.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).