No new external debt: Mexico makes major upgrades to ethylene, aromatics, and urea plants

I. Core Investment Objective: Expand Domestic Chemical Production and Eliminate Import application

This investment will be fully implemented in the existing petrochemical manufacturing cluster in Veracruz, coordinating the repair of old facilities with the construction of new production facilities, to fully layout the basic chemical sector chains such as ethane-to-ethylene, aromatics, synthetic ammonia, and urea.

According to the plan, after all projects are put into production, Mexico's annual production of domestic petrochemical items will reach 849,000 tons, and annual fertilizer production capacity will surpass 4 million tons, reducing the country's prolonged import demand to petrochemical raw materials and fertilizer items from the supply side, and enhancing the self-sufficiency level of the domestic chemical sector chain.

II. Clear Sources of Funds, Implemented in Two Modes, Strictly Controlling New External Debt

This 93 billion peso investment is divided into two major modes: general investment and mixed investment. The fund structure planning is clear, and the company explicitly states that it will not incur new external debt:

· general investment scale is approximately 57.2 billion pesos;

· 30 billion pesos are corporate own funds, to be disbursed between 2026 and 2029.

All projects are concentrated in the three major petrochemical core parks in Veracruz: Coatzacoalcos, Morelos, and Pajaritos, with corresponding investment amounts and renovation goals allocated by chain.

(I) Breakdown of Petrochemical sector Chain Investment

· Ethane-Ethylene sector Chain: Allocated with 30 billion pesos, completing the upgrade and renovation of 5 vegetation. After completion, the annual production capacity of ethylene derivatives will be 520,000 tons, which can drive 6,000 direct jobs and 18,000 indirect jobs;

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· Synthetic Ammonia Production Project: Allocating 13 billion pesos to the Morelos complex to repair two synthetic ammonia vegetation, designed with an annual ammonia production capacity of 957,000 tons.

(II) New Construction and Renovation Projects in the Fertilizer Sector

Fertilizer capacity construction is divided into two major sectors: the upgrade of existing vegetation and the construction of brand-new facilities:

· Renovation of two fertilizer vegetation, Morelos and Pajaritos, focusing on phosphate and nitrogen fertilizer production, with a planned total capacity of 2.4 million tons, which can add 7,900 direct job positions;

· The brand new Escalin plant in Poza Rica, focusing on synthetic ammonia and granular urea, with a total investment of 25 billion pesos and an annual capacity of over 700,000 tons. The project construction period can provide 3,500 job positions.

III. Project Construction Cycle Planning

All expansion, renovation, and new construction projects to petrochemicals and fertilizers will implement a mode of starting in batches and putting into production in stages. All investment projects are planned to be fully completed and put into operation by 2030.