An Alpek spokeswoman said the Corpus Christi project had no influence on the company’s decision to close the Cooper River plant. The decision was “based on optimizing Alpec Polyester’s current production assets,” he said.
Alpec’s decision to close the Cooper River PET plant is not surprising, according to market analyst Phil Kalig, managing director of Masserine Bay Associates in St. Louis.
Karig said Alpek currently operates about half of its total PET resin capacity in North America, and with the Cooper River move, it is “probably reducing some of the higher-cost capacity.” is.
Even after the closure, Alpek will be the region’s largest PET maker, Karig said, and could potentially integrate lost Cooper River volumes into other plants through elimination of bottlenecks and other efficiency improvements.
He added that through the Corpus Christi project, Alpec “will acquire additional capacity several times that of Cooper River within the next few years.”
Alpek recently announced its full-year 2022 financial results. The company set a company record with its $10.6 billion in sales, up 37% compared to 2021. Polyester fibers — $7 billion, up 45%.
Polyester segment 2022 earnings before interest, taxes, depreciation and amortization (EBITDA) also increased 43 percent to $886 million. Annual output of these materials was 11.7 billion pounds, an increase of 8%.
On March 1st, Alpek’s management also changed hands, with Jorge Young Ceresedo replacing José de Jesús Valdes Simancas (known as Pepe), who had been with the company for 46 years. Valdez Simancas will continue to serve as Senior Advisor to his ALFA, Alpek’s parent company.
Cerecedo has been with Alpek for 32 years, most recently as President of Alpek Polyester. He will continue in that role and assume the duties of CEO.
In a news release, Valdez Simancas lamented, “The entire Alpek team is extremely proud of the outstanding work they have done to continuously transform the company over the last few years.” “I am confident that together we will continue to drive Alpek’s growth,” added Cerecedo.
