Mexico Chemicals
MEXICO CHEMICALS 2015 MEXICO CHEMICALS MEXICO CHEMICALS 2015 Economy - Chemicals - Energy Reforms - Petrochemicals - Agrochemicals Paints and Coatings - Specialty Chemicals - Distribution Dear Readers, Mexico’s chemicals industry presents an enormous opportunity. The country’s vast wealth of natural resources, which includes medicinal plants, oil, to minerals, timber, marine, and agricultural products, can serve as raw materials and create new openings for developing new businesses and integrating multiple supply chains. At the same time, top-down, government-led structural reforms have opened the economy to further investment and will spur domestic consumption and exports, particularly with its northern neighbor. Mexico’s demographic potential is also obvious. In 2015, 53 million of Mexico’s 120 million citizens will be active participants in the economy. According to the National Institute of Geography and Statistics (INEGI), the chemicals industry accounted for 2.6% of Mexico’s GDP and 14.5% of manufacturing GDP in 2012, while employment was 0.8% and 8%, respectively. The largest segments of the industry include petrochemicals, rubber and plastics, pharmaceuticals, soaps, detergents and cosmetics. For the time being, the chemicals industry is slowed by its dependence on imports for raw materials, but savvy and visionary leaders can seize this historical opportunity to increase local production. The petrochemicals sector will be the most closely watched, in light of the opening of the exploration and production segment of the hydrocarbons industry and the privatization of petrochemicals plants. Historically, petrochemicals production has been volatile, with the industry reaching an apex of 51 plants producing 16 million metric tons in 1996, but the subsequent lack of investment and upgrade caused these facilities to decay.
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