Mexichem Informs About Hurricane Harvey´s Effect on its Operations

September 1, 2017

Tlalnepantla de Baz, Estado de Mexico, September 1, 2017 – Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) ( “Mexichem”) announced today that Mexichem Resinas Vinílicas S.A. de C.V., Mexichem Resinas Colombia S.A.S., and Mexichem Specialty Resins Inc. (Vinyl’s business subsidiaries in Mexico, Colombia and the USA), as well as Mexichem Fluor Comercial S.A. de C.V., and Mexichem Fluor S.A. de C.V. (Fluor’s business subsidiaries) have declared a Force Majeure condition due to the impact of Hurricane Harvey.

The Company’s Vinyl Business Group subsidiaries declared a Force Majeure related to the supply of all their suspension, copolymer, and emulsion PVC resins produced in Mexico, Colombia and the USA due to the fact that their main VCM supplier and other raw material suppliers declared a Force Majeure.

In the case of the Fluor subsidiaries, the plants were not impacted by the hurricane and continue operating in “business as usual” mode, however, they are facing some logistics challenges to deliver products in a proper manner and according to certain agreements. As a consequence, both Fluor subsidiaries Mexichem Fluor Comercial and Mexichem Fluor declared a Force Majeure event to specific clients related for the supply of certain products.

Based on current information, Mexichem believes that the effect of Hurricane Harvey will be temporary and not significant to its business and that the operations will be revamped no later than the end of September. However, we will assess the situation with more accuracy when conditions in the affected areas return to normalized levels.

Mexichem is working to minimize the impact on their business and will continue to provide updates regarding its supply capability.