January 9, 2019
Alpek has signed an agreement to acquire a PET recycling plant from Perpetual Recycling Solutions
San Pedro Garza Garcia, Nuevo Leon, Mexico. January 9, 2019 - ALFA, S.A.B. de C.V. (ALFA) revealed that its subsidiary Alpek, S.A.B. de C.V. ('Alpek') announced today that one of its subsidiaries has signed an agreement with Perpetual Recycling Solutions, LLC ('Perpetual') to acquire a PET recycling plant in Richmond, Indiana, USA.
The Perpetual PET recycling plant has an installed capacity to produce approximately 45,000 tons per year of high-quality recycled PET flake. This acquisition will complement Alpek's food-grade PET recycling operations in Argentina and its fiber-grade PET recycling joint venture facility in Fayetteville, North Carolina, USA.
Subject to customary conditions precedent, the closing of this transaction is expected during the first quarter 2019. Certain terms of the agreement will be disclosed at a later stage.
Alpek is a leading petrochemical company operating two business segments: 'Polyester' (PTA, PET and polyester fibers), and 'Plastics & Chemicals' (polypropylene, expandable polystyrene, caprolactam, and other specialty and industrial chemicals). Alpek is an integrated producer of PTA and PET in North America, the largest expandable polystyrene manufacturer in the Americas, and the only producer of caprolactam in Mexico. Alpek also operates one of the largest polypropylene facilities in North America. In 2017, Alpek reported revenues of U.S. $5.2 billion and EBITDA of U.S. $384 million. The Company operates 23 plants in the United States, Mexico, Canada, Brazil, Argentina and Chile, and employs more than 5,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
ALFA is a holding company that manages a portfolio of diversified subsidiaries: Sigma, a leading multinational refrigerated food company, focused on the production, marketing and distribution of quality foods through recognized brands in Mexico, Europe, United States and Latin America. Alpek, one of the world's largest producers of polyester (PTA, PET and fibers), and the leader in the Mexican market for polypropylene, expandable polystyrene (EPS) and caprolactam. Nemak, a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, structural components and for electric vehicles. Axtel, a provider of Information Technology and Communication services for the enterprise, government and mass market in Mexico. Newpek, an oil and gas exploration and production company with operations in Mexico and the United States. In 2017, ALFA reported revenues of Ps. 317,627 million (US $16.8 billion), and EBITDA of Ps. 38,312 million (US $2.0 billion). ALFA's shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.
Luis Ochoa Reyes
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
+52 (81) 8748-2521