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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.

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The spinoff from the Eindhoven University of Technology in the Netherlands said in a statement that ‘achieving a positive cash flow from its advanced polyester recycling technology will take too long’, sustainable Plastics reports.

Ioniqa has been operating a demonstration facility at Brightlands Chemelot Campus in Geleen, the Netherlands , since summer 2019. The demo plant, with a capacity of 10,000 tonnes a year, produces recycled
PET for food-contact applications.

This January, the company received funding from Infinity Recycling’s Circular Plastics Fund to help scale up and bring its technology to market, including broadening its feedstock to include polyester fibres.

However, ten months in, Ioniqa said large-scale deployment of its PET depolymerisation technology has proven ‘economically unfeasible’ under current market conditions and the company’s current set-up.

It cited low cost of virgin plastics, a plastics recycling chain still in development, and too-far-out-into-the future implementation of recycling quotas mandates as factors for its poor financial position.

With its strategic licencing partner Koch Technology Solutions, a UK-based technology licensing business with roots in DuPont, the partners expected to sell licences will on an estimated 50,000-plus tonnes scale...

The company’s Denua technology is a proprietary glycolysis process that depolymerises all types and colours of PET waste into its original monomers. Its feedstock is mostly based on low-end PET.

As an investor, if you had asked portfolio planning PLUS, we would have told you about the financial risk by developing an integrated economic model on our PAAS system.

#chemicalrecycling #plasticrecycling #pet #depolymerisation