Communicator

Cedar Creek facility in Fayetteville, North Carolina | Alpek, S.A.B. de CV

May 30, 2025 | Monterrey, N.L., Mexico

Alpek, S.A.B. de C.V. (Alpek), a leading global polyester producer headquartered in Mexico, announced it will permanently cease operations at its Cedar Creek facility in Fayetteville, North Carolina, effective July 31, 2025. The decision, part of Alpek’s long-term strategy to optimize its global footprint, will result in the loss of approximately 180 jobs at the site.

The Cedar Creek plant, acquired by Alpek in 2001, has an installed capacity of 170,000 tons of PET resin and about 35,000 tons of recycled PET (rPET) flake production annually. The closure is expected to generate around $20 million in annualized savings for Alpek by 2026 as the company shifts focus to its more competitive and scalable assets.

Alpek stated that it will reallocate production to other facilities within its regional and global network to continue serving customers with high-quality and sustainable polyester solutions. The company emphasized that this move is part of broader cost-reduction efforts, reinforcing its long-term vision to strengthen its core business and financial position.

The Fayetteville closure follows recent shutdowns at other Alpek sites, including its Cooper River plant in South Carolina and the Monterrey polyester filament plant in Mexico. After the closure, Alpek’s Columbia site in Gaston, South Carolina and Pearl River site in Bay St Louis, Mississipi, will remain the only PET manufacturing facilities of Alpek Polyester Americas.

Alpek has not disclosed where the Cedar Creek production will be reallocated, nor has it commented on the impact to its corporate offices in Charlotte and Wilmington. The company has expressed its intent to work with local employment agencies to support affected workers during the transition.

#dak  #alpek  #polyester  #pet  #mexico  #fayetteville  #cedarcreek  #rpet  #recycledpet  #cedarcreek  #pearlriver  #petmanufacturing 

The description of Alpek S.A.B. de CV has been updated.

#alpek #pta  #pet  #rpet  #polypropylene  #mexico 

Mexico, 29 April 2025 -- Mexico’s state-owned energy giant Pemex closed 2024 with a staggering net loss of $30.3 billion, a dramatic reversal from its modest $398 million profit in 2023, as plummeting crude production, refining inefficiencies, and soaring debt obligations crippled its financial health. The results, detailed in company filings and analyst reports, underscore deepening challenges for a firm critical to Mexico’s economy but increasingly seen as a liability in global energy markets.

Financial Freefall and Debt Crisis

Pemex’s revenue fell 2.4% in 2024, driven by declining oil exports and weaker international crude prices. The company’s refining segment, despite processing 905,607 barrels per day-its highest volume since 2016-remained a drag, operating at just 46% of capacity. The much-touted Olmeca refinery, a $24 billion project initially promised to revolutionize domestic fuel production, processed a meager 23,275 barrels per day on average, barely 6.8% of its 340,000-barrel capacity.

Debt, however, remains Pemex’s most pressing issue. By year-end 2024, liabilities reached $97.6 billion, rising to $101.1 billion by March 2025. Government bailouts, including an 80 billion peso ($3.9 billion) infusion in early 2025, have done little to stabilize finances. Fitch Ratings affirmed Pemex’s ‘B+’ credit rating in December 2024 but warned that interest payments alone-estimated at $8.3 billion annually-consume over half its operating cash flow.

Production Woes and Leadership Turbulence

Crude and condensate output averaged 1.67 million barrels per day (bpd) in 2024, far below the government’s 1.8 million bpd target. Aging fields and delayed drilling projects exacerbated the decline, with Q1 2025 production dropping 11.3% year-on-year to 1.5 million bpd. Pemex’s inability to reverse this trend has raised doubts about President Claudia Sheinbaum’s pledge to achieve energy self-sufficiency by 2030.

Leadership instability further complicates recovery efforts. In May 2025, Pemex abruptly reinstated Ángel Cid Munguía as head of exploration and production after his predecessor, Gustavo Martínez, resigned unexpectedly. The shuffle reflects mounting pressure to address operational setbacks, including a 31% reduction in drilling activity
compared to 2023.

Strategic Gambles and Long-Term Risks

Pemex’s $109.4 billion five-year investment plan, announced in February 2025, aims to revive production and modernize infrastructure. Yet skepticism abounds. The company owes suppliers $19.9 billion, jeopardizing partnerships essential for new projects. Meanwhile, its refineries—burdened by decades of underinvestment—remain reliant on imported feedstock, costing Mexico $18 billion annually in fuel imports.

The Olmeca refinery epitomizes these struggles. Despite claims of “progress,” the facility operated sporadically in 2024, with December output at just 13% of capacity. Analysts warn that without significant operational overhauls, Pemex’s refining ambitions will remain unmet, perpetuating reliance on foreign gasoline and diesel.

Outlook: A Precarious Balance

Pemex’s survival hinges on continued government support and successful debt management. While officials tout joint ventures with private firms-offering at least 40% stakes to attract capital-investors confidence remains fragile. The firm’s reliance on volatile oil prices and political favoritism leaves it vulnerable to external shocks.

As Mexico grapples with Pemex’s systemic issues, 2025 looms as a pivotal year. Will the energy titan stabilize its finances and production, or will it become a cautionary tale of resource nationalism gone awry? For now, the scales tip perilously toward the latter.

#pemex  #refineryutilization  #refining  #refinery  #olmeca  #mexico  #oilrefinery 

Cangrejera gas cracker has an ethylene production capacity of 500,000 tpa

Mexico City, Mexico - February 12, 2025 - Petróleos Mexicanos (Pemex), Mexico's state-owned oil and gas company, has announced a significant investment of $975 million to bolster the country's petrochemical industry. This investment is part of the Mexican government's broader plan to revitalize the sector and reduce reliance on imports.

The funds will be used to reactivate the Cangrejera complex, transforming it into a petrochemical refinery. This move aims to increase domestic production of essential petrochemical products, thereby meeting the growing demand within Mexico and potentially reducing reliance on imports.

Pemex CEO Víctor Rodríguez emphasized the importance of this investment, stating, "This initiative aligns with our commitment to strengthen Mexico's energy independence and foster economic growth." He further highlighted the collaboration between Pemex and other government agencies, including the Ministry of National Defense and the Ministry of Citizen Security, to combat fuel theft and ensure efficient logistics.

The Mexican government's 2024-2030 Hydrocarbon Sector Work Plan outlines several strategic actions for Pemex, including:

▪️Efficient exploration and sustainable production
    of hydrocarbons
▪️Strengthening the refining system
▪️Expanding petrochemical and fertilizer output
▪️Securing efficient logistics
▪️Promoting clean energy generation


#pemex  #petroleosmexicanos   #pemextransformacionindutrial   #veracruz   #mexico   #coatzacoalcos   #cangrejera 

Pemex' Cangrejera Petrochemical Complex has been added.

#pemex #petroleosmexicanos  #pemextransformacionindutrial  #veracrus  #mexico  #coatzacoalcos  #cangrejera 

While president Joe Biden himself is hampering the U.S. energy sector by suspending new LNG export permits, his Mexican counterpart says he regrets not buying more oil refineries for Mexico.

Andres Manuel Lopez Obrador admitted he regrets not authorizing the purchase of two more oil refineries similar to Deer Park in Texas.

At one time, AMLO admitted, he and others believed refineries were becoming obsolete due to the growing popularity of electric cars.

AMLO revealed that three years ago, about a dozen refineries in Houston were up for sale at significantly lower prices, and Shell had a few available. He said the decision not to purchase the refineries was influenced by the lack of confidence in the future of gasoline and the difficulty in obtaining U.S. approvals for the deal.

Lopez Obrador said he would encourage the next president to build and buy new refineries.

#mexico  #Refinery