Announcement of IFC Investment in Mexico Nineteen Million US Dollars for Petrochemicals on August 7, 1978

• International Finance Corporation - IFC Press Release No. 79/4 Hop.day, August 7, 1978 tMHm.lffllft i?liUtttn1i -- 1818 H Street.NW Washington, DC 20433 IJ SA 202 · 393 -6360 IFC Investment in Mexico $19 Million for )?etrochemicals IFC is supporting the development of Mexico's petrochemic2.l industry with a $19 million subordinated loan, $ 7 million of which is convertible into equity, for Tereftalatos Mexicanos S. A. (TENEX). The Company is building a $98. 4 million,. 135,000 metric tons-a-year purified terephtalic acid (PTA) plant rn=;ar the La Congrejera petrochmiecal complex in the southern state of Veracruz. TEHEX is the largest petrochemical ·project with private interests now under way in Mexico and will be one of the country's largest petrochemical intermedic1;:r.iesi bea..reen the government-ovmed oil company~ PEMEX, which will supply the hydrocarbon feeds tocks i and dmms tream industrial users~ It '-·;rill be the first sizal1le new • project linked to the Goverrm1ent' s large imrestment in the m2.jor La Congrej era petrochemical complex in southern Mexi.co .. The complex will be fed primarily from . the large hydrocarbon reserves recently proven i.n the States of Tabasco and Chiapas in the Isthmus·· of Tehuantepec region. TENF.:X is an important prototype for mixed private/public petrochemical ventures being encouraged by the Government. The private m,mersbip group is headed by Celanese Nexicana., S.A., a company 60 per cent owned by Mexican investors and 40 per cent by Celanese Corporation of the United States .. Amoco Chemicals Corporation, a Standard Oil Company of Indiana chemicals subs:Ld:tary si j_s also a shareholder and technical partne·1· in the projectu Public sector equity commitments in the project have been made by the Sociedad Mexic.ana de Credito Industrial~ S.A. (SOHEX) and assoc.:lated funds, by Nacional Financiera, S .. A. (NAFINSA) and assoc.ia.ted funds, and by Sosa Texcoco, S.A. ~ a public-sector manufactur:i.ng company, SO}.ffiX and NAFINSA are the major Governrnent- owned finance j_nstitutions charged with promoting the development of Mcx:Lc.o's secondary petrochemical sector. • Loan financing is being provl<led by NAFINSA} the Export-J.rnport Bank of tbe United States and Irving Trust Company)' and the Fondo Nacional de Er:tudi.os de Pre-Inversion.  - 2 - ' TENEX will convert paraxylene from PEHEX into PTA, principally for use in • the domestic market by Mexico's polyester producers who use PTA as a raw· material. The convers.ion process from paraxylene to PTA will use proprietary processes (::a' developed by Amoco. Growth in demand for synthetic fibers, including polyester, in Mexico has been substantial and TEMEX will enable Mexico to be self-sufficient in meeting the demand for raw materials for polyester production. At completion the TEMEX facility will be the largest PTA plant in Latin America~ • (Any inqui.ri2s strictly relating to IFC' s participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5340.) •