Mexichem Provides Update on Hurricane Harvey Business Impact[sgmb id=1]
Tlalnepantla de Baz, Estado de Mexico, October 3, 2017 – Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”) reports that Hurricane Harvey’s impact on Mexichem’s Vinyl and Fluor Business Groups has not affected its EBITDA guidance for full year 2017.
Thanks to effective business continuity planning and execution, the Company’s 50/50 joint venture ethylene cracker in Ingleside,Texas was shut down safely before Hurricane Harvey made landfall in the area, and it resumed operations on September 11, 2017. Mexichem’s main supplier of vinyl chloride monomer (VCM) stated that they resumed plant operations on September 15, 2017.
In the case of the Fluor subsidiaries, the plants were not impacted by the hurricane and have continued operating in a “business as usual” mode, with only modest logistical challenges.
As a result of this relatively short down-time, Mexichem is able to reaffirm its EBITDA guidance range for 2017 of 15%-25% growth compared to EBITDA of US$884 million reported for full year 2016.
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