Mexichem is a group of Mexican chemical and petrochemical companies. We have more than 50 years of experience and have been listed on the Mexican Stock Exchange for 27 years. With annual sales of approximately US$1.2 billion and exports to more than 50 countries, we are now leaders in the Latin American market. Mexichemfs major products have a large market in the most dynamic growth sectors in Mexico construction, housing, potable water, and urban sewage systems as well as in the United States and Latin America. We are extremely proud of our ongoing, active contribution to Mexicofs development.

In a global market where product quality and thorough service play a key role, Mexichem divides its operation into two major areas:

Vinyl-chlorine chain

This chain operates sodium chloride brine extraction for the manufacture of chlorine soda, vinyl chloride, and polyvinylchloride (PVC).

The MEXICHEM companies which participate in this process are:

Union Minera del Sur, located in Jaltipan, Veracruz, where sodium chloride brine is extracted in underground salt domes. This brine is sent to Cloro de Tehuantepec through pipes covering a distance of 43 km. Approximately 1,500 tons of dry base salt are sent on a daily basis.

Cloro de Tehuantepec, located in the Pajaritos Industrial Park in Coatzacoalcos, Veracruz, is the second plant of its kind in Latin America, with an annual production capacity of 268,000 tons of chlorine-soda and 61,300 tons of sodium hypochlorite. Cloro de Tehuantepecfs production supplies PEMEX with chloro-gas, the raw material to manufacture VCM, which is in turn used to make PVC.

Pennwalt has two plants, strategically located in the states of Mexico and Jalisco. Together, these two plants have an annual production capacity of 70,000 tons of chlorine-soda, over 200,000 tons of sodium hypochlorite, and 72,000 tons of hydrochloric acid. Pennwalt also has a distribution center for caustic soda which moves over 120,000 tons per year.

Grupo Primex has three industrial plants located in Altamira, Tamaulipas; Tlaxcala; and Cuautitlan, in the State of Mexico. Primex also has its own production chain of phthalic anhydride which, among other things, is used to make plasticizers, in turn used in the manufacture of PVC compounds-the final stage in the Vinyl-chlorine Chain. 349,000 tons of suspension resins, and 12,500 tons of emulsion resins are produced every year.

Fluorine Chain

This chain serves to extract fluorite z^ and transform it into diverse products.

The MEXICHEM companies that participate in this process are:

Mexichem Fluor - San Luis Potosi, located in the state of San Luis Potosi; it is the largest worldwide producer of fluorite-the commercial name for calcium fluoride-which is a key mineral in steel manufacturing, cement production, and in the chemical and aluminum industries.

Fluorite is marketed in two forms: metallurgic gravel for the iron and steel, glass, and ceramic industries; and in acid grade concentrate as the raw material to obtain hydrofluoric acid - the base for making fluorocarbons used in refrigeration, propellants, and in thermoplastic polymers.

Through Mexichem Fluor- San Luis Potosi, Mexichem exports its products to Canada, the United States, South America, Europe and Japan, among other countries.

It produces 350,000 tons of metallurgic gravel, and 280,000 tons of acid grade concentrate per year.

Mexichem Fluor- Tamaulipas, located in Matamoros, Tamaulipas, produces anhydride and aqueous hydrofluoric acid-a raw material in the manufacture of refrigeration gases and specialized polymers, foaming agents, and propellants. It is also used to produce aluminum and high-octane gasoline; in stainless steel stripping; in the production of nuclear fuel such as uranium hexafluoride; in the manufacture of electronic circuit cards; in the production of material such as tantalum, which is used for glass etching; and in the production of fluorinated salts and cleaning agents.

Due to its installed capacity, Mexichem Fluor is the second largest plant in the world, producing 208 million pounds per year. It exports 98% of its production to the U.S.