Venezuela is planning to become one of the world´s biggest producers of petrochemical products. One of its three focal points here will be the plastics sector. Pequiven and Mobil Chemical are planning a new plastics plant for the year 2003, and a second big project is lined up for 2006. This significant expansion of the raw materials base is intended to provide major impetus for industrialisation and to stabilise the export revenue of this country, with its mineral oil resources, at a higher level. In parallel to this, the pressure to rationalise is making it necessary to merge existing production plants and create a joint sales and service organisation.

The biggest producer of plastics is PdVSA, subsidiary of Petroquimica de Venezuela (Pequiven). Most companies are joint ventures in which Pequiven has a big holding. The company has announced investments of more than USD 8.3bn in petrochemicals as a whole over the next ten years. The focus here will be on olefins, methanol and fertilisers. Seven higher-growth sectors were identified in manufacturing industry for the investment plan. In the case of plastics, these included the product areas of packaging, industrial components, building materials, domestic appliances and film.

As part of its joint venture with Mobil Chemical (50:50), Pequiven is building a new olefin plant in the Jose petrochemicals complex in the state of Anzoategui, with investment costs of some USD 1.5bn. As of the year 2003, the ethylene cracker will be producing more than 1m t ethylene, which is to be converted into 435,000 t ethylene glycol and 685,000 t polyethylene. A second plastics project is already being drawn up by Pequiven and Mobil Chemical for the longer term – once again on a 50:50 basis. This second plant, costing USD 2.25 bn, would similarly be located at Jose, with the start of production envisaged for 2006.