Chemical EngineeringChementator briefs
Isononyl alcohol Last month, Dow, Inc. (Midland, Mich.; www.dow.com) and…
Focus on Temperature
The world’s first temperature transmitter with Bluetooth Last November, this…


Alpek, Indorama and Far Eastern form JV company to acquire M&G’s Corpus Christi project

By Mary Page Bailey |

Corpus Christi Polymers LLC (CC Polymers) — a newly formed joint venture between Alpek S.A.B. de C.V. (San Pedro Garza Garcia, Mexico; www.alpek.com), Indorama Ventures Holdings LP (“Indorama”) a subsidiary of Indorama Ventures Public Ltd. (IVL; Bangkok, Thailand; www.indorama.net) and Far Eastern Investment (Holding) Ltd. — has entered into an asset purchase agreement with M&G USA Corp. and its affiliated debtors whereby CC Polymers will acquire the integrated PTA-PET (Purified Terephthalic Acid and polyethylene therephthalate) plant currently under construction in Corpus Christi, Texas, certain M&G intellectual property, and a desalination/boiler plant providing water and steam needs to the Corpus Christi Project. The purchase agreement provides M&G with a binding bid of $1.125 billion in cash and other capital contributions.
The Corpus Christi Project is an integrated PTA-PET plant currently under development that, when completed, will have nominal capacity of 1.1 million and 1.3 million metric tons per year  (m.t./yr) of PET and PTA, respectively. The plant is expected to be the largest single-line vertically integrated PTA-PET production facility in the world and the largest PTA plant in the Americas.
Pursuant to the terms of the newly formed joint venture, the parties will provide resources to CC Polymers to complete the project in the most efficient and cost effective way. A timeline for project completion will be communicated at a later stage. Alpek, Indorama, and Far Eastern will each have the right to receive one-third of the capacity of PTA and PET produced at the Corpus Christi Project upon completion. Each party will independently procure its raw materials and will independently sell and distribute their corresponding PTA and PET.

The closing of the transaction is subject to conditions precedent including approval by the bankruptcy court and applicable governmental authorities.
PJT Partners is serving as financial advisor and Weil, Gotshal & Manges LLP is serving as legal advisor to Alpek. HSBC is serving as financial advisor and Lowenstein Sandler LLP is serving as legal advisor to Indorama. Morgan Stanley is serving as financial advisor and Duane Morris LLP is serving as legal advisor to Far Eastern.

Related Content

Chemical Engineering publishes FREE eletters that bring our original content to our readers in an easily accessible email format about once a week.
Subscribe Now
The Big 6 level measurement technologies: Where to use them and why
ABB in Chemical Industry
6 benefits to expect from a measurement partner
Expect more from your measurement with ABB
Wet process analyzer for FPD and solar cell manufacturing for semi-conductors

View More