ALPEK B de C : & ContourGlobal create JV to develop a CO2 recovery facility
March 30, 2021 at 10:29 am EDT
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Monterrey, N.L., Mexico. - Alpek, S.A.B. de C.V. ('Alpek') announced today that it has formed a new joint venture company ('JV') with ContourGlobal plc ('ContourGlobal') to develop a CO2 capture and liquefaction facility. The site would be integrated into ContourGlobal's cogeneration facility in Altamira, Mexico ('CGA'). Each party holds a 50% stake in the JV.
The JV was created to meet the rising need of food-grade CO2 for Mexico's food and beverage industry, which is currently undersupplied by around 80,000 tons per year, and used in the carbonation of soft drinks, beer, and mineral water, among others.
This venture is well aligned with the three pillars of Alpek's Long-Term Strategic Growth Plan: Foster a Circular Economy
Sustainable Product Portfolio: Alpek intends to continue growing its share of products that promote a lower carbon footprint and are well aligned with a fully circular economy. The proposed CO2 recovery facility would be a carbon negative asset, helping Alpek reduce its carbon footprint, as the company works towards full carbon neutrality Strategic & Focused Growth: * Product Innovation: When Alpek began negotiating the sale of CGA to ContourGlobal in 2019, both companies were already contemplating the construction of a CO2 recovery facility. In this sense, this venture represents the fruit of a proactive mindset of both teams. Our Innovation team will continue to actively look for new products that can help Alpek grow by drawing on its core strengths.
Strengthen the Core Business: * Value Added Products: This venture diversifies Alpek's portfolio with a new product that can be commercialized through its existing PET customer base, moving us further into new, attractive and growing markets.
'This project is very attractive from both an ESG as well as a financial perspective,' said Jose de Jesus Valdez, Alpek CEO. 'It combines the operational excellence of both partners alongside ContourGlobal's expertise in carbon capture and Alpek's ability to leverage its long-standing customer relationships in an effort to better serve their diverse needs.'
The facility being considered would have a nameplate capacity of 70,000 tons per year and could be completed as early by late 2022. Detailed engineering studies and commercial due diligence will be carried out to arrive at a final investment decision ('FID') by the end of 3Q21.
Contact:
Alejandro Elizondo F.
aelizondo@alpek.com
T. +52(81)8748-1146
About Alpek
Alpek is a leading petrochemical company operating two business segments: 'Polyester' (PTA, PET, rPET, and polyester fibers), and 'Plastics & Chemicals' (polypropylene, expandable styrenics, caprolactam, and other specialty & industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene and caprolactam in Mexico. In 2020, Alpek reported revenues of U.S. $5.3 billion and Comparable EBITDA excl. RMCF of U.S. $601 million. The Company operates 31 plants in the United States, Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom, and employs more than 6,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
About Alpek
Alpek is a leading petrochemical company operating two business segments: 'Polyester' (PTA, PET, rPET, and polyester fibers), and 'Plastics & Chemicals' (polypropylene, expandable styrenics, caprolactam, and other specialty & industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene and caprolactam in Mexico. In 2020, Alpek reported revenues of U.S. $5.3 billion and Comparable EBITDA excl. RMCF of U.S. $601 million. The Company operates 31 plants in the United States, Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom, and employs more than 6,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
Alpek SAB de CV is a Mexico-based company engaged in the chemicals sector. The Company's activities are divided into two business segments: Polyester and Plastics & Chemicals. The Polyester division focuses on the manufacture and distribution of purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fiber. The Plastics & Chemicals division is responsible for the production of polypropylene (PP), expandable polystyrene (EPS), caprolactam (CPL), ammonium sulfate, as well as specialty and industrial chemicals, such as surfactants, ethoxilates, glycoethers and desemulsionates. The Company's products are used in a range of industries, including consumer goods, food and beverages, automotive, construction, agriculture, oil and gas, as well as pharmaceuticals. It operates a number of production plants in the Americas. The Company is controlled by Alfa SAB de CV.
ALPEK, S.A.B. DE C.V. 
