Looking ahead, Mexico has an opportunity to reignite the growth of its chemical industry. Several advantages could accelerate its growth potential:
The market is huge. Mexico's chemical consumption is equivalent to approximately $40 billion of chemical, 12 with high growth potential supported by strong manufacturing demand. This makes Mexico one of the 15 largest consumers of petrochemical in the world.
Nearshore position. Companies based in Mexico can serve Latin American and U.S. markets through favorable trade partnerships and shorter shipping distances (shipping from Mexico is now about 50% cheaper and 80% faster than shipping from Asian countries
Access to competitive raw materials and reserves. Mexico has huge reserves of natural gas, such as the deepwater Lacahe field. In addition, the potential opening of the Dos Bocas refinery, as well as refinery improvement plans in the country, could generate more naphtha and propylene by-products, benefiting the chemical industry. In addition, Mexico's proximity to the Gulf Coast gives it ample and economical access to raw material imports.
Established a recycling chain. Mexico has become a significant player in plastic mechanical recycling and an early adopter of food-grade recycling polyethylene terephthalate (rPET). About 15 to 20 percent of plastic is recycled in Mexico, compared with 10 to 15 percent in Brazil, India, and the US. Mexico's high recycling rate reflects the fact that 85% of waste is collected and can be transferred to recycling streams, but a limited amount is mismanaged or incinerated (chart 4). 14
Renewable resources. Mexico has access to some of the most favorable solar and wind resources in the world. Today, new solar and wind projects can offer leveled electricity costs as low as $30 per megawatt hour, 15 to 20 percent lower than the world average, making Mexico one of the top five countries in the world for providing low-cost solar power. 16
Labor availability. Average hourly wages in Mexico are about 90 percent lower than in the United States and about 65 percent lower than in China, according to the Economist Intelligence Unit. 17 Low wages in Mexico's labor market may give chemical companies an edge in new construction and operating costs.
ECHEMI --- The name originated from the abbreviation of “E-commerce of chemical”.