DAK closing Cape Fear PET plant

By Frank Esposito
Senior Staff Reporter

Published: June 20, 2013 4:58 pm ET
Updated: June 20, 2013 9:31 pm ET

Related to this story

Topics Materials, Materials Suppliers

DAK Americas will close its site making PET resin and related products in Wilmington, N.C., by September in a move that will reduce North American PET oversupply. The shutdown also will eliminate 600 jobs.

Charlotte N.C.-based DAK has owned the site — known as the Cape Fear plant — since 2001, when it was purchased from DuPont Co. The plant was opened in the 1960s and makes PET, purified terephthalic acid and polyester staple fiber. The site has 440 million pounds of PET capacity.

The 600 job cuts include 350 DAK employees and 250 contractors.

The decision to close the plant "is very difficult for our employees," DAK President Jorge Young said in a June 19 news release. "We thank them for their dedication and commitment to our industry for more than 40 years."

Young added that the closure "will allow [DAK] to further improve our low-cost position by supplying the vast majority of our Cape Fear site customers from our other North American facilities."

DAK's remaining North American production sites include U.S. plants in Fayetteville, N.C.; Bay St. Louis, Miss.; and Charleston and Columbia S.C., as well as a plant in Cosoleacaque, Mexico.

DAK is a unit of industrial conglomerate Alpek SAB de CV of Monterrey, Mexico.

The move will alleviate some pressure from a North American PET field that's oversupplied by more than 2 billion pounds, according to some market watchers. In spite of this oversupply, M&G Group and others have announced plans to add capacity.

DAK has announced no such plans, but earlier this year, parent firm Alpek bought the rights to 900 million pounds of PET capacity at a plant that M&G plans to build in Corpus Christi, Texas. That plant is scheduled to open in 2016.


Comments

DAK closing Cape Fear PET plant

By Frank Esposito
Senior Staff Reporter

Published: June 20, 2013 4:58 pm ET
Updated: June 20, 2013 9:31 pm ET

Post Your Comments


Back to story


More stories

Image

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying...    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-...    More

Image

Evonik sees clear growth opportunities with new Plexiglas Resist resin

October 17, 2014 6:00 am ET

Evonik Industries AG presented a new specialty molding compound during Fakuma in Friedrichshafen with which it plans to exploit the growing demand...    More

Image

Teknor adding second UK production line

October 17, 2014 9:25 am ET

Teknor Apex Co. will add a second thermoplastic elastomer production line at its United Kingdom plant by the end of 2015 to meet growing demand.    More

Image

PolyOne denies report it's bidding for Klöckner Pentaplast

October 16, 2014 11:44 am ET

UPDATED — Compounding leader PolyOne Corp. is denying a report that it bid as much as $2 billion for film and sheet major Klöckner Pentaplast Gr...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events