M&G PET plant in Texas on schedule with new contractor

Comments Email Print

Problems with a former construction contractor won't stop a major PET resin plant from opening in Corpus Christi, Texas, later this year.

M&G Group's plant will be able to make more than 2 billion pounds of PET per year.

Contractor Industrial Maintenance Services Inc. walked off the job in December, after asking to be paid $50 million in two days, according to M&G global manufacturing director Mauro Fenoglio.

Fenoglio said it was "an extraordinary demand" from Escanaba, Mich.-based IMS, "which was well outside all contracts."

Plastics News reported in December that M&G ended its contract with IMS on Dec. 9.

Fenoglio added that a new contractor, Bay Ltd. of Houston, now is catching up from the delays.

Fenoglio added that M&G is continuing to sort through claims from IMS subcontractors that say they were not paid.

The new site is expected to create 250 permanent jobs. In addition to PET, the site will have almost 3 billion pounds of annual capacity for PTA feedstock.

PET maker DAK Americas has purchased the rights to 900 million pounds of the plant's PET output.

M&G is a global producer of PET resins, polyester fibers and purified terephthalic acid based in Tortona, Italy, with its U.S. headquarters in Houston.