20 June 2013 22:59 [Source: ICIS news]
NEW YORK (ICIS)--The upcoming closure of DAK Americas’ Cape Fear Site near Wilmington, North Carolina, is expected to have minimal to no impact on the US polyethylene terephthalate (PET) market and on the feedstock purified terephthalic acid (PTA) side, market sources said on Thursday.
DAK announced the closure on Wednesday and said it expects the closure to be completed by September, according to a company news release.
One market player said that the Cape Fear plant is just the first of several plants that are from the old DuPont lineage that will be shut down over the next few years. The Cape Fear Site was built in the late 1960s and acquired by DAK from DuPont in 2001.
Another source said that it does not expect any impact on PET prices from the DAK closure, as there is no shortage of capacity on the market.
Another market player said that the closure should create only a temporary PTA/PET capacity reduction in the market, but that there is sufficient PET capacity in North America to supplement the reduction.
At most, there will be some temporary market fluctuations in the PET line, but no changes on the PTA side, one market player said.
The Cape Fear plant has a total nameplate capacity of 550,000 tonnes/year of PTA for its two units, according to ICIS plants and projects.
Headquartered in Charlotte, North Carolina, DAK Americas is a wholly owned subsidiary of Mexico-based Alpek and is one of the largest global producers of PET resins.
PTA is a direct feedstock for PET. PET is used in plastic bottle production and in textiles.
PET producers in the US include DAK Americas, Indorama, Mossi & Ghisolfi (M&G) and Nan Ya Plastics.
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