MOSCOW (MRC) -- Alpek announced the shutdown of its textile and industrial fiber production facility (“filament”) located in Monterrey, said the company.
The site was built in 1962, has an installed capacity of 100,000 tons of polymer and filament, and has represented minimal contribution to Alpek’s total EBITDA in recent years.
Alpek is continuously looking for opportunities to create value by streamlining its operations to meet the demands of the competitive markets it serves and assure its financial strength. The production oversupply experienced globally in recent years for the filament industry, among other factors, has significantly reduced its profitability, and as this situation is not expected to change in the near future, the Company has made the challenging decision to close its operations at such facility and will not be substituting production.
“The Company will provide a comprehensive separation package for all collaborators and all necessary support as part of the closure,” stated Jorge Young, Alpek’s CEO. “Although efforts were made, unfortunately this is the only option available at the time. I want to express my heartfelt gratitude to each of the employees of this site for their commitment to the company throughout the years.”
We remind, Alpek, Indorama and FENC announced earlier that Corpus Christi Polymers (CCP) will resume construction on the facility in August. The plant is expected to begin production of polyethylene terephthalate (PET) and purified terephthalic acid (PTA) in early 2025. Construction of the state-of-the-art plan is resuming following a period of pandemic-related disruptions. The new facility is expected to be the largest vertically integrated PTA-PET production plant in the Americas, with annual capacities of 1.1m tonnes of PET and 1.3m tonnes of PTA. It will employ three state-of-the-art technologies.