Mexico Alpek prioritises capacity rights regarding M&G Corpus Christi plant

HOUSTON (ICIS)–Alpek aims to either maintain original capacity rights under a new owner at Mossi & Ghisolfi’s (M&G) polyethylene terephthalate (PET)/purified terephthalic acid (PTA) plant in Corpus Christi, Texas, or to possibly be a joint bidder on the plant with the goal of maintaining those volumes.

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Alpek, which acquired supply rights for 500,000 tonnes/year of PET from the integrated plant, said on Tuesday during the company’s Q4 investors call that its primary intention regarding the sale of the Corpus Christi plant is to preserve those volumes. CFO Eduardo Escalante did not elaborate on its involvement in the sales process beyond that.

The integrated plant is still under construction, and Escalante noted that additional capital would be required on Alpek’s part to participate in finishing the plant. The bankruptcy auction for the plant is scheduled for early March.  Nameplate capacity will be 1.1m tonnes/year of PET and 1.3m tonnes/year of PTA.

In Mexico, Alpek is working to support M&G’s operation of its Altamira PET plant, which restarted in November after a temporary shutdown due to M&G’s financial problems. Alpek entered a temporary tolling agreement with M&G under which Alpek provides feedstocks PTA and monoethylene glycol (MEG) in exchange for the PET, which is then sold to customers.

Additionally, Alpek recently entered a credit agreement to provide up to $60m in secured financing to M&G to support its Altamira operations. Alpek’s largest PTA plant is located nearby, and CEO José de Jesús Valdez noted Alpek’s priority to maintain PTA supply to the plant.

Regarding its acquisition of Petroquímica Suape, or PQS, Alpek expects closing in April or May after final steps in the transaction.

Major producers of US PET are Indorama; DAK, a subsidiary of Alpek; and Nan Ya.