Corpus Christi Polymers LLC (CC Polymers) has entered into an asset purchase agreement with M&G USA Corp. to acquire the integrated PTA-PET plant currently under construction in Corpus Christi, Texas (Corpus Christi Project), certain M&G intellectual property, and a desalination/boiler plant providing water and steam needs to the Corpus Christi Project.
CC Polymers is a newly formed joint venture between Alpek, S.A.B. de C.V. (Alpek), Indorama Ventures Holdings LP (Indorama), a subsidiary of Indorama Ventures Public Company Limited (IVL), and Far Eastern Investment (Holding) Ltd. (Far Eastern).
The purchase agreement provides M&G with a binding bid of $1.125 billion in cash and other capital contributions, an IVL press release said.
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 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.
Upon completion, each of Alpek, Indorama, and Far Eastern will have the right to receive one-third of the capacity of PTA and PET produced at the Corpus Christi Project. Each party will independently procure its raw materials and will independently sell and distribute its corresponding PTA and PET. (RKS)
