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Vitro contracts Enron to supply plants

Mexican glassmaker Vitro said it had signed an agreement with energy firm Enron Corp. for the US company to build a power plant in Mexico.
“Enron will build and operate its own plant, capable of gene…

Mexican glassmaker Vitro said it had signed an agreement with energy firm Enron Corp. for the US company to build a power plant in Mexico. “Enron will build and operate its own plant, capable of generating 245 megawatts of electricity, in the metropolitan area of Monterrey,” Vitro said in a statement. The accord must be approved by the Mexican government. Vitro did not give an estimate of the expected investment by Enron and company spokesmen declined to give any further details. In 1998, French firms Alstom and Vivendi decided to build a plant in Mexico capable of producing 250 megawatts of electricity at a cost of some US$ 340 million. The Enron plant was expected to come on line in 2002 and supply 12 Vitro factories. Vitro said the pact would allow it to save US$ 10 million a year in energy costs. In the January to September period of 1999, the Mexican glassmaker posted revenues of US$ 1.87 billion.

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