ALFA to Buy Eastman’s PET Polymers Business, Assets in Latin America
ALFA, S.A.B. de C.V. (ALFA), the leading Mexican industrial company, announced today it has entered into definitive agreements with Eastman Chemical Company (NYSE:EMN) to acquire PET polymers production facilities in Mexico and Argentina and the related businesses. Terms of the transactions, which are expected to close during the fourth quarter of this year, were not disclosed.
“This acquisition is another step forward in our strategy of reinforcing the competitive position of our businesses and will allow us to better serve our customers in the growing Latin American markets,” said José de Jesús Valdez, president of Alpek, ALFA’s petrochemical unit. “We are buying modern production facilities. Furthermore, the Mexican plant is next to our PTA facility, thus allowing us to capture valuable synergies. In Argentina, a country of strategic importance for ALFA, we enjoy logistic and access advantages for our PTA, a key raw material for PET production" he added.
Gregory O. Nelson, Eastman executive vice president and polymers business group head, said, “Eastman is taking a number of actions to improve the financial performance of its overall PET polymers business. The sale of these non-integrated assets is an important element of that effort.”
The sale, which is subject to customary approvals, includes Eastman’s PET manufacturing facilities in Cosoleacaque, Veracruz, México, and Zárate (close to Buenos Aires), Argentina. Their production capacity is 150,000 and 185,000 metric tons per year, respectively.
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