Mexichem expects final report on Pajaritos’ explosion in March

Mexichem expects in March the final report from Mexican authorities on the explosion at the Pajaritos petrochemical complex.

“We expect the authorities to present the final report of the accident next month,” said Antonio Carrillo, CEO of Mexichem, during a conference call with investors.

The company previously told Forbes Mexico that it could claim coverage for the policies until the damage report ends.

On April 21, Petroquímica Mexicana de Vinilo (PMV) reported an explosion at its Colorados III plant that killed 32 workers and wounded 130 in Veracruz.

PMV is a joint venture between Mexichem and Petróleos Mexicanos (Pemex), which owns a minority stake in the company. The intention to create PMV was to integrate the chain of PVC, sulfur, ethane, ethylene, as well as intermediate products.

In its financial report for the fourth quarter of 2016, the company said that PMV recognized a receivable of $ 276 million, related to property damage, assembling, damages to third parties (civil liability), as well as managers and officials.

In response to the question of the remediation plan, Carrillo mentioned that they have concluded the environmental impact studies derived from the explosion in the water, sanitation and in homes near the place and delivered them to the authorities, in this case, the Federal Attorney of Protection to the Environment (Profepa).

“We do not see a bigger impact (towards the company) by the explosion with all the information we have,” he added.

The non-governmental organization Greenpeace presented results of soil and water samples collected on 23 and 24 April last year in search of dangerous chemicals in the affected area after the explosion a few days earlier.

The predominant chemical is ethylene dichloride (EDC), a substance classified as potentially carcinogenic by the International Agency for Research on Cancer (IARC) and US health services. EDC found concentrations exceed 10 to 28 times the limits established by the United States regarding the wastewater discharged from the plastics sector.

Regarding the financial results, the company reported at the conference that its operational flow growth guide (EBITDA) for 2017 will be between 10% and 20%, compared to reported EBITDA in 2016 of 884 million dollars.

Intercam financial group said that the company’s outlook looks “positively positive” because they are trying to achieve higher sales of products with a better margin.

Mexichem is one of the main players in the petrochemical and plastic pipe industry, with exports to more than 50 countries.