FEIH, Far Eastern New Century Corporation’s (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) wholly owned subsidiary, has agreed to form a joint venture with Indorama Ventures Holdings LP(“Indorama”) and Alpek, S.A.B. de C.V.(“Alpek”) to acquire M&G integrated PTA/PET assets currently under construction, with annual capacity of PTA 1.3 million tons and PET 1.1 million tons, in Corpus Christi, Texas, USA. The binding bid is US$ 1.125 billion and each party has agreed to be responsible for one-third investment (i.e. FEIH will invest US$ 375 million). Each party has the right to off-take one-third of the capacity and to source its feedstock independently. This is FENC’s further asset acquisition in the US following its first US investment in M&G’s PET plant in West Virginia and a R&D center in Ohio in February. The closing shall be consummated subject to the bankruptcy court and related authorities’ approval.
In 2016, M&G launched its Corpus Christi project in Texas, USA, to build the world’s largest integrated PTA/PET production line as well as the single largest US PTA plant. In 4Q2017, M&G filed for bankruptcy protection under Chapter 11 to sell its assets. FENC’s acquisition in Corpus Christi will be the Company’s largest investment in the US, made in order to fulfill the fast growing PET demand in the US and Americas, to avoid the non-tariff trade barriers for importing to the American market, to easily access the abundant and cheaper feedstock and energy besides the Gulf Coast and to purchase the latest production technology and benefit from tax reform bills.
FENC was not only the first PET producer manufacturing the very first PET bottle in Asia but also ranks as Asia Top 1 and worldwide Top 5 PET producer. Currently the Company has PET production sites in Taiwan and China, with its new Vietnam PET plant of 400,000 tons per year to start operation in June 2018. With the additional capacity acquired in West Virginia last month, FENC would enhance its industrial position and elevate its market competency. In 2017, FENC’s consolidated revenue reached US$ 7.2 billion.
Indorama Ventures Public Company Limited, the parent company of Indorama Ventures Holdings LP, is a publicly listed company in Thailand. The worldwide renowned petrochemical player operates its production sites among continents: Asia, North America, Europe, and Africa. Indorama manufactures various products such as PTA, MEG and PET. In 2017, Indorama Ventures’ consolidated revenue reached US$ 8.4 billion.
Alpek, S.A.B. de C.V. is a publicly listed company in Mexico. The well-known petrochemical player in the region of America operates its production sites in the U.S., Canada, Mexico and Brazil. Alpek manufactures various products such as PTA, PET and plastics. In 2016, Alpek’s revenue reached US$ 4.8 billion.
