Alpek is the leading producer of polystyrene foam in the Americas and the third largest worldwide, and operates the only polypropylene (PP) plant in Mexico.
This polypropylene plant is one of the largest PP production facilities in North America, according to internal estimates and review of publicly available market and industry information.
The company is one of the leading producers of PTA and PET worldwide, based on installed capacity as of December 31, 2021 (according to Wood Mackenzie, internal estimates and industry information).
Alpek has also become the largest integrated polyester producer in the Americas and one of the leading producers worldwide, which has enabled it to maintain a leadership position across its product portfolio.
Approximately two-thirds of net sales are derived from the polyester product portfolio, including the production of PTA, PET, recycled PET, and polyester fibers.
Alpek
Throughout most of the third quarter of 2022, polyester demand was solid, registering a slight decline towards the end of the quarter in North America, in part due to the lack of railcar availability, which resulted in lower product availability.
Integrated polyester benchmark margins in Asia remained at elevated levels, averaging $400 per tonne in Q3 2022 (-2% TsT), exceeding expectations for this period.
However, over the course of the quarter and as shipping costs have gradually returned to normal levels, benchmark margins have begun to normalize to average US$356 in September, still above historical levels.
Meanwhile, in the polypropylene business, demand contracted towards the end of the quarter, leading to increased inventory levels which, together with new capacity installed in North America, led to a decline in benchmark margins to an average of US$0.34 per pound (-13% TsT).
Business profile
Based on the size of its annual revenues, Alpek is estimated to be one of the largest petrochemical companies in Mexico.
Alpek is comprised of two business segments: polyester products (the «Polyester Business») and plastics and chemicals (the «Plastics and Chemicals Business»).
The Polyester Business, which comprises the production of PTA, PET, recycled PET and polyester fibers, is focused on the food and beverage packaging, textile filament and industrial markets.
The Plastics and Chemicals Business, which encompasses the production of PP, EPS, ARCEL, fertilizers and other chemical products, is focused on a wide range of markets, including consumer goods, food and beverage packaging, automotive, construction, agriculture, petroleum, pharmaceutical and other markets.
