Mexico declares end to drought; some chemical plants restarting

CIUDAD VICTORIA, Mexico—Orbia Advance Corp. and Ineos Styrolution are both restarting resin production in Altamira, Mexico, although neither has yet lifted force majeure sales limits.

“Thanks to the regularization of the water cycle in the region and in coordination with the authorities, we have been able to partially resume our operations, as we are in the process of gradually increasing the pace of production,” an Orbia spokeswoman said in a July 1 email to Plastics News, a Rubber News sister publication.

“Once we reach normal levels and the plant is operating in a stable and regular manner, we will lift the force majeure that is still in effect,” she said.

Ineos Styrolution is also in the process of restarting.

“I can confirm that the Altamira area experienced significant rainfall from multiple storms including Tropical Storm Alberto, resulting in a substantial increase in local reservoir water levels,” a company spokesman told PN.

“Earlier this week ... the local water utility company, communicated an increased supply of fresh water to industrial customers. Consequently, Ineos Styrolution has initiated the process of restarting all manufacturing units at our Altamira, Mexico, production facility. However, we remain under force majeure until normal supply is fully restored,” he said.

The government of the state of Tamaulipas on the Gulf of Mexico has officially declared an end to the severe drought that played havoc with industrial operations, including plastics, for more than a month.

"Meteorological conditions have brought an end to the water emergency in the south of Tamaulipas," the government said in a news release emailed to PN on June 28.

It added that the industrial sector in Altamira "is preparing to resume operations after being informed by (federal water commission) Conagua about the [renewed] availability of the vital liquid, thanks to a rise in reservoir levels."

In mid-May, local authorities cut off water supplies to as many as seven dozen industrial sites in Altamira, according to some analysts, forcing many of those affected—including half a dozen petrochemical companies—to suspend or scale down normal manufacturing operations.

Those confirmed as being impacted included global resin maker Ineos Styrolution, Boston-based Cabot Corp., which produces carbon black additives in Altamira, Chemours Co. (titanium dioxide), Saudi Basic Industries Corp. and Orbia Advance Corp.

Other industry reports indicated DAK Americas and Indelpro were also affected.

On June 24 Chemours told PN it had resumed normal operations in Altamira, while on June 27 Cabot said it expected to do so "within a few days."

PN has reached out to Indelpro for comment on the status of its facilities in Altamira.

Tropical storm Alberto drenched the Altamira area over three days between June 19-21, replenishing reservoirs by up to 70 percent of their capacity, the state government said.