Organizational Profile | Primary brands, products, and/or services | FULLY
Organizational Profile | Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) | FULLY
Organizational Profile | Significant changes during the reporting period regarding size, structure, or ownership | FULLY
Environmental | Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation | FULLY
Our main business segment is Polyester, which includes the production and marketing of PTA (purified terephthalic acid), PET (polyethylene terephthalate) and polyester fibers.
PTA is manufactured from paraxylene and is reacted with monoethylene glycol (MEG) to produce PET and polyester fibers. Our clients use PET primarily to manufacture packaging for beverages, food and consumer products. Polyester fibers are used in the manufacture of textiles for the home, clothing and various industrial applications such as seat belts.
Alpek is the only integrated manufacturer of PTA and PET in North America and has the only PET plant in Argentina. Furthermore, with the acquisition of CabelmaPET, it also operates the only food-grade recycled PET (r-PET) plant in Argentina.
The Polyester segment consists of twelve plants located in the United States, Mexico and Argentina, with an aggregate annual capacity of 4.4 million tons and a workforce of 3,441.
In line with our commitment to sustainability and environmental well-being, we increased our recycling capacity by 22% in 2014.
We are now able to recycle up to 89 thousand tons of PET per year (equivalent to 4.0 billion bottles).
Approximately 84% of our polyester products are sold in Mexico, the United States and Canada, while the manufacture of packaging for beverage, food and consumer products accounts for 90% of the segment’s revenue. The high share of sales to stable consumer segments within NAFTA contributes to the steady sales volume.
Our Polyester segment represented 73% of the company’s total income in 2014, posting sales of US $4.8 billion, with a volume of 3.1 million tons. Sales declined 11% year-on-year, as a result of a 13% drop in the average sales price reflecting the fall in crude prices. EBITDA was US $270 million, 30% less than the previous year, driven primarily by an estimated US $90 million impact related to the drop in crude oil and feedstock prices in 2014.
There are elements that point to a brighter outlook in the near future. On the one hand, leading Chinese producers called for greater market discipline, and Asian capacity growth rate has slowed down. Moreover, there have been capacity shutdowns in Asia and other regions of the world.