MOSCOW (MRC) -- Mexican polyester producer Alpek reported a decline in Q4 consolidated net income because of the shutdowns at two plants and higher taxes, said the company.
The company shut down its caprolactam operations in Salamanca, Mexico and its stable fibres operations in Cooper River in South Carolina state, US. Alpek shut down the plants because of an extended period of low margins that were caused by high raw-material costs. In addition, the outlook for the two industries was unfavourable, Alpek said.
Q4 gross profit rose year on year because sales grew faster than costs. The following table shows the company's Q4 financial performance.
For Polyester, volumes rose quarter on quarter because of the resolution of a drought at Altamira, Tamaulipas state in Mexico. Quarter on quarter, earnings before interest, tax, depreciation and amortisation (EBITDA) benefited from inventory and carry-forward effects. These were partially offset by plant shutdowns.
The Polyester segment produces purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fibres. For Plastics & Chemicals, volumes fell quarter on quarter because of planned maintenance at a plant in the US that make expandable polystyrene (EPS).
Earnings fell quarter on quarter because of plant shutdowns. The segment makes EPS and polypropylene (PP).
As per MRC, Alpek has signed an agreement to acquire Omani polyethylene terephthalate (PET) producer Octal Petrochemical. Alpek to acquire 100% stake in Octal for USD620 million Octal owns a petrochemical complex in Salalah, Oman, with an annual virgin PET capacity of 850,000 tons per year. Alpek said the deal will bring the company's capacity to more than 1 million tonnes.
It was previously reported that Alpek and its joint venture partners may restart construction of their polyethylene terephthalate (PET) project in Texas in 2022. Production could start in two years, which means a launch in early 2024.
Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. Its business is divided into two main segments: "polyesters" (terephthalic acid, polyethylene terephthalate and polyester fibers) and "plastics and chemicals" (polypropylene, expanded polystyrenes, caprolactam, polyurethanes and other specialty and industrial chemicals). Alpek is the world's leading manufacturer of purified terephthalic acid and PET; it owns the largest expanded polystyrene plant on the continent and one of the largest polypropylene plants in North America. Alpek currently has 19 factories in Mexico, USA and Argentina. Alpek is part of the Mexican conglomerate Grupo Alfa. Alpek also owns DAK Americas.
MRC