Sep 1, 2017   SOURCE: BusinessWire

Mexichem Informs about Hurricane Harvey's Effect on Its Operations  

Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) ( “Mexichem”) announced today that Mexichem Resinas Vinílicas S.A. de C.V., Mexichem Resinas Colombia S.A.S., and Mexichem Specialty Resins Inc. (Vinyl’s business subsidiaries in Mexico, Colombia and the USA), as well as Mexichem Fluor Comercial S.A. de C.V., and Mexichem Fluor S.A. de C.V. (Fluor’s business subsidiaries) have declared a Force Majeure condition due to the impact of Hurricane Harvey.

The Company’s Vinyl Business Group subsidiaries declared a Force Majeure related to the supply of all their suspension, copolymer, and emulsion PVC resins produced in Mexico, Colombia and the USA due to the fact that their main VCM supplier and other raw material suppliers declared a Force Majeure.

In the case of the Fluor subsidiaries, the plants were not impacted by the hurricane and continue operating in “business as usual” mode, however, they are facing some logistics challenges to deliver products in a proper manner and according to certain agreements. As a consequence, both Fluor subsidiaries Mexichem Fluor Comercial and Mexichem Fluor declared a Force Majeure event to specific clients related for the supply of certain products.

Based on current information, Mexichem believes that the effect of Hurricane Harvey will be temporary and not significant to its business and that the operations will be revamped no later than the end of September. However, we will assess the situation with more accuracy when conditions in the affected areas return to normalized levels.

Mexichem is working to minimize the impact on their business and will continue to provide updates regarding its supply capability.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping, one of the most cost-efficient PVC producer and one of the world’s largest chemical and petrochemical companies. Mexichem contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, Datacom, water management, among others. With operations in over 30 countries, Mexichem’s global footprint includes more than 18,000 employees, 120 plants, 2 fluorite mines, 15 R&D laboratories and 8 training academies. Mexichem has annual revenues of US$5.4 billion, it has over 50 years of history and more than 30 years trading on the Mexican Stock Exchange. The company is member of the Mexican Stock Exchange Sustainability Index and the sustainability emerging markets index FTSE4Good.

Forward-looking Statements

In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, the economy, business, competition, market and regulatory factors, cyclical trends in relevant sectors; as well as other factors that are highlighted under the title “Risk Factors” on the annual report submitted by Mexichem to the Mexican National Banking and Securities Commission (CNBV). The forward-looking statements included herein represent Mexichem’s views as of the date of this press release. Mexichem undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”

Mexichem has implemented a new Code of Ethics that rules its relationships with its employees, clients, suppliers and general groups. Mexichem’s Code of Ethics is available for consulting in the following link: http://www.mexichem.com/Codigo_de_etica.html Additionally, Mexichem Audit Committee established a mechanism of contact, which allows that any person that knows the unfulfilment of operational and accounting records guidelines and lack of internal controls of the Code of Ethics, from the Company itself or from the subsidiaries that this controls, file a complaint which is anonymously guaranteed. The whistleblower program is facilitated by a third party. The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem and contact e-mail is mexichem@ethic-line.com. Mexichem’s Audit Committee will be notified of all complaints for immediate investigation.