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August 03, 2016 02:00 AM

Alpek may buy share in PET, PTA feedstock plant in Brazil

Frank Esposito
Senior Staff Reporter
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    Mexican industrial conglomerate Alpek SAB de CV is in talks to buy a share of a plant making PET resin and PTA feedstock in Brazil.

    That stake currently is owned by Petroleo Brasileiro SA (Petrobras), the state-owned Brazilian oil firm. Monterrey-based Alpek has been given an exclusive 60-day period to negotiate for Petrobras' stake in Petroquimica Suape and Citepe, two firms that operate an integrated complex in Ipojuca, Brazil.

    The complex has annual production capacities of almost 1 billion pounds of PET and more than 1.5 billion pounds of PTA, as well as almost 200 million pounds of texturized polyester filament.

    Alpek officials said in a July 28 news release that if it reaches a sale agreement with Petrobras, the closing of the transaction will require further corporate approvals and approval by the appropriate governmental authorities.

    Petrobras has been linked to a corruption scandal as the Brazilian economy has struggled through a recession. Marcelo Odebrecht, former CEO of Brazilian construction giant Odebrecht, was sentenced to prison earlier this year for his role in a corruption scheme involving Petrobras. Odebrecht and Petrobras jointly own Braskem SA, the Brazilian plastics and chemical giant that also ranks as North America's largest PP resin maker.

    Alpek's many holdings include DAK Americas, the Charlotte, N.C.-based firm that ranks as one of North America's largest PET makers.

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