27 September 2013 03:06 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Alpek has agreed to form a joint venture, through subsidiary Petrotemex, with Russia’s United Petrochemical Company (UPC) to build a purified terephthalic acid (PTA) and polyethylene terephthalate (PET) plant in Russia’s independent republic of Bashkortostan, the company said on Thursday.
Alpek, the largest petrochemical company in Mexico, and UPC, a subsidiary of Russian conglomerate Sistema, will invest $10m (€7.4m) each to carry out a feasibility study for the plant, with construction subject to approval by the directors of both companies.
The plant, which would serve the Russian PET market, would have a maximum installed capacity of 600,000 tonnes each of PTA and PET, and would use Alpek’s IntegRex technology, the company said.
The plant would use locally sourced paraxylene (PX), with negotiations currently underway with private Russian oil firm and Sistema subsidiary JSOC Bashneft for supply of the feedstock.
“We are pleased to have signed the agreement with Alpek on the PET project, our first joint venture,” said UPC president Kirill Tyurdenev.
“The project will give us access to the unique IntegRex technology and new opportunities to supply our PET products to the fast growing Russian and international petrochemical markets.”
The agreement marks Alpek’s first venture outside of the Americas. The company currently operates 20 plants in the US, Mexico and Argentina.
“We are convinced that this partnership will create an unparalleled value offer in the Russia PET market by combining Alpek’s IntegRex technology and polyester value chain expertise with UPC’s unique domestic sourcing capabilities and local market knowledge,” said Alpek chief executive officer Jose de Jesus Valdez.
Alpek said the project had been granted approval by the European Commission, while approval from other competition authorities is expected in due course.
($1 = €0.74)
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