Optimizing installed capacity is part of Alpek’s business strategies to strengthen its business.
Alpek is a Mexican company, one of the largest producers of polyester fiber and PET pellets and a producer of a wide range of chemical products, such as purified terephthalic acid (PTA) and ethylene glycol (MEG).
Alpek’s business strategies
In particular, Alpek is the leading producer of expandable polystyrene (EPS) in the Americas and the fifth largest worldwide.
Below are its main financial results in 2023 and 2024, in millions of pesos:
- Revenues: (2023:138,159; 2024: 137,409).
- Operating Income: (2023:-6,437; 2024: 6,057).
- EBITDA: (2023:13,092; 2024:12,855).
- Net income: (2023:-10,914; 2024:-765).
Alpek is part of the Alfa group and operates plants in the Americas, Europe and Asia.
Alpek’s business strategies, divided into three key pillars, are shown below.
Alpek seeks to strengthen the current business through continuous operational improvement. Cost optimization and the creation of high value-added products are essential in this process.
The company focuses on taking advantage of opportunities linked to ESG (Environment, Society and Corporate Governance). It promotes the circular economy and is working on initiatives to reduce CO2 emissions.
Alpek’s strategic growth is supported by integrations within the value chain. Product innovation and mergers and acquisitions focused on generating synergies and achieving geographic diversification are fundamental to this last pillar.
Plant Closure
Alpek intends to continue improving its operating efficiencies. One of its focuses is to replace older, less efficient facilities with new large-scale production plants. These new facilities will be equipped with advanced technologies for low-cost production.
In the last quarter of 2024, the company decided to discontinue operations at the EPS plant in Beaver Valley, resulting in additional savings of US$20 million. It is estimated that, by mid-2025, total savings will reach approximately US$100 million per year.
According to the company itself, in the case of Alpek’s EPS-based products, there is significant competition for its use as an insulation material with other products used for the same purposes.