HOUSTON (ICIS)--Alpek has stopped supplying purified terephthalic acid (PTA) to Mossi & Ghisolfi (M&G)-operated polyethylene terephthalate (PET) plants in Altamira, Mexico, and Suape, Brazil, as a result of past-due payments, according to a company statement that ICIS obtained on Wednesday.
Alpek said that M&G’s consolidated past-due balance totalled $49m or 40% of its total balance.
“Alpek may resume PTA supply upon payment of delinquent invoices or once alternative mechanisms are set forth to support M&G’s operations,” Alpek said. It added that it has “engaged other creditors to assess the situation and determine the appropriate individual or joint course of action”.
Alpek also has supply rights for 500,000 tonnes/year of PET at M&G’s new integrated PET/PTA plant under construction in Corpus Christi, Texas.
M&G has been targeting start-up for the PET unit in the fourth quarter of this year with the PTA plant to follow in second quarter of 2018. Nameplate capacity will be 1.1m tonnes/year of PET and 1.3m tonnes/year of PTA.
Alpek said it will “heighten its continued assessment and monitoring of the project’s status and act accordingly,” with regard to the Corpus Christi plant.
M&G did not immediately respond to requests for comment.
Image above: Bottles like these are made from PET. Source: Mood Board/Rex/Shutterstock