Indorama Ventures Public Company Limited Enters into Equal Joint Venture with Alpek, S.A.B. De C.V. and Far Eastern Investment Limited
March 19, 2020 at 01:47 am EDT
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Reference is made to the disclosure made by Indorama Ventures Public Company Limited ("IVL") on March 21, 2018 regarding the entry into an equal Joint Venture with Alpek, S.A.B. de C.V., and Far Eastern Investment (Holding) Ltd, for formation of a joint ventures company, namely Corpus Christi Polymers LLC ("CCP"), to acquire the integrated PTA-PET assets in Corpus Christi, Texas, USA, under construction from M&G USA Corp. and its affiliated debtors ("M&G") and subsequent disclosures made on December 24, 2018 and January 2, 2019. IVL would like to inform that the current construction estimate is significantly higher than the estimate at the time of completion of acquisition, such increase being largely attributable to higher labor costs prevailing in the gulf coast region.
The Board of Managers of CCP, comprising of representatives of all the three JV partners, have decided to extend the project approval through 2020 to optimize project construction efficiency in order to build a competitive PTA-PET asset at the site. IVL does not expect to make any additional cash contribution during the year 2020. The site will be adequately preserved during this period for seamless restart of construction.
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. 
