Pemex Awards Contract to Increase Production Capacity of its Ethylene Oxide Plant

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Pemex, Mexico’s state-owned oil company, awarded a $44 million contract to Swecomex, based in Mexico City. The project aims to increase the processing capacity of the Morelos petrochemical complex in Veracruz by 25%. The project entails raising Morelos' ethylene oxide production capacity from 225,000 tons per year to 280,000 and it is planned to be completed by the first quarter of 2009. There is a growing demand for this product on the market, and Pemex Petroquimica is Mexico's sole ethylene oxide producer with its Morelos and La Cangrejera complexes, both in Veracruz. The ethylene oxide derivatives are anti-freeze, automobile dashboards, plastic bottles, cosmetics and biodegradable detergents, among other things.

Swecomex, owned by Mexican magnate Carlos Slim, has been awarded contracts from Pemex, particularly for offshore rig construction. Pemex began the bidding process for the Morelos project on December 6, 2006. Swecomex beat 21 other companies for the contract.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.