Sunday, December 16, 2012

Pequiven 5 years investment plan

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In the last few days there have been a lot of movements around Venezuela and Pequiven. At the end of the 3rd quarter of the year, during the annual AVIPLA conference PEQUIVEN CEO, Saul Ameliach gave a speech about the status of the latest investment planned in polymers and petrochemicals in Venezuela.

Also some information have appeared in the national an international press, about the PEQUIVEN investment plan for the 2013 - 2017 period. Basically, I read mostly about an upgrade over the fertilizant units in the Moron complex (with an interesting remark from the Planning Chief of the complex "The plants in the Moron complex are falling appart").

Regarding the most interesting topic (at least for this blog), the polymer production and capacity addition these are the news:

- Increase PE and PP production to 600kta and PVC production to around 400 kta.

These are great news, but sadfully already with 5 years of delay, when I started this blog all these new capacity additions should have come online by 2013, but it will happen 4 years later. Demand of the polymer has already surpass the country capacity and these investments are necessary to catch up with the demand.

Some other interesting information I have found while some short research which emphasizes the consequences of delay investments in the polymer production area. The info is given by Jose Perez a PEQUIVEN director, during the same AVIPLA Congress:
"Currently PEQUIVEN sells around 690kta of polymers, from that, around 16% (110kta) are imported. For 2016 PEQUIVEN expects to sell around 1000kta of polymers, without any significant production increase and new demand will be covered by an increase of imports".

So in short, in Venezuela, it is not about exports, it is not about being trapped in a international economic crisis, or waiting to invest in the upturn of a cyclical market, is simply about not being able to supply enough materials due to lack of investment.

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