Oct 4, 2017   SOURCE: BusinessWire

Mexichem Provides Update on Hurricane Harvey Business Impact

Mexichem, S.A.B. de C.V. (BMV:MEXCHEM*) (“The Company” or “Mexichem”) reports that Hurricane Harvey’s impact on Mexichem’s Vinyl and Fluor Business Groups has not affected its EBITDA guidance for full year 2017.

Thanks to effective business continuity planning and execution, the Company’s 50/50 joint venture ethylene cracker in Ingleside, Texas was shut down safely before Hurricane Harvey made landfall in the area, and it resumed operations on September 11, 2017. Mexichem’s main supplier of vinyl chloride monomer (VCM) stated that they resumed plant operations on September 15, 2017.

In the case of the Fluor subsidiaries, the plants were not impacted by the hurricane and have continued operating in a “business as usual” mode, with only modest logistical challenges.

As a result of this relatively short down-time, Mexichem is able to reaffirm its EBITDA guidance range for 2017 of 15%-25% growth compared to EBITDA of US$884 million reported for full year 2016.

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 unfulfillment 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.