17-12-2014

OxyChem and Mexichem start construction of their JV ethylene cracker

Ingleside Ethylene, LLC, the 50/50 joint venture between Occidental Chemical Corporation (OxyChem) and Mexichem, S.A.B. de C.V., today announced that construction of its ethylene cracker at OxyChem’s Ingleside, Texas, complex is underway and the project remains on schedule to become commercially operational in the first quarter of 2017. 

Senior management from both companies and Texas Land Commissioner-elect George P Bush, participated in a ceremony to celebrate the symbolic  groundbreaking of the new ethylene cracker.

Construction of the cracker began in the second quarter of 2014. When  completed it will have the capacity to produce 1.2 billion pounds (550,000  cubic meters) of ethylene per year and provide OxyChem with an ongoing source of ethylene for manufacturing vinyl chloride monomer (VCM), which Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems. The project will create approximately 1,700 jobs at peak construction and generate  more than 150 permanent jobs. OxyChem will operate the cracker upon completion.

“The ethylene cracker is a significant project for both OxyChem and  Mexichem, enabling us to capitalize on the advantages that shale gas  development presents for the chemical industry. It also helps our companies  better compete globally in our respective markets,” said Robert Peterson,  President of OxyChem.

“The Oxy-Mexichem joint venture is a vital part of our strategy to become a global vertically integrated specialty chemicals company with a focus on high-end products. Once operational, this cracker will provide a steady supply of ethylene, a key raw material for many of our most important products. We look forward to working with OxyChem in the coming years to complete the project”, said Antonio Carrillo, Chief Executive Officer of Mexichem.

Total investment in the project will be approximately $1.5 billion. In  December 2013, Ingleside Ethylene, LLC awarded CB&I the engineering and  construction