Italian PET producer M&G selects Corpus Christi, Texas, as location for 1 million-ton/year PET plant, and related 1.2 million-ton/year PTA plant; facilities to employ 250 workers

HOUSTON , July 12, 2011 (press release) – M&G Group, the largest producer of PET for packaging applications in the Americas, has selected Corpus Christi, Texas, as the location for construction of its previously announced one million tons per year PET plant (2.2 billion pounds) and accompanying 1.2 million tons per year (2.6 billion pounds) PTA plant. The new plants will generate approximately 250 new jobs. An additional 700 indirect positions are anticipated and as many as 3,000 jobs likely will be created during construction.

The new PET single line plant will employ the same technology as M&G's single reactor Suape (Brazil) PET plant, including M&G's revolutionary EasyUp(TM) SSP technology. Corpus Christi, Texas, is located 200 miles southwest of Houston, Texas, and 145 miles east of Laredo, Texas. It is strategically located on the Gulf of Mexico with a metropolitan population over 400,000. The Port of Corpus Christi is the sixth largest port in the United States, in terms of tonnage, and will soon expand significantly as a major trade gateway for Mexico and Latin America with development of the La Quinta Container Terminal.

"Corpus Christi is an excellent strategic home for what will be M&G's largest-ever investment. It has exceptional highway, deep-water and rail access, including three Class 1 railroads," said Marco Ghisolfi, CEO of M&G's Polymers Business Unit.

"I'm pleased M&G Group has chosen Corpus Christi as the location of its new North American plant, creating hundreds of jobs for Texans and further strengthening our state economy, and wish them continued success at this new facility," said Governor Rick Perry of Texas. "This announcement is great news for South Texas and for the Lone Star State as we continue to attract companies from around the world to create jobs in Texas thanks to our low taxes, reasonable and predictable regulatory climate, fair legal system and skilled workforce."

"It was not only the Corpus Christi Regional Economic Development Corporation's and Governor Perry's Economic Development & Tourism Division's aggressive business-friendly approach in attracting M&G to Texas that weighed heavily in making the location decision, but also the service and supply efficiencies resulting from the presence of six refineries and Paraxylene production in the area, as well as the excellent port infrastructure that allows the benefit of having marine access to most of the PTA/PET facility's key raw materials, Paraxylene, Acetic Acid and Ethylene Glycol," added Ghisolfi.

Forbes has ranked Corpus Christi in the top 25 percent of the large metropolitan areas for low costs of doing business. The area is populated by a highly skilled workforce in petrochemical, heavy fabrication, water transport and aerospace. Moody's ranked Corpus Christi in the best 20 percent of metropolitan areas for low workforce costs.

"We are very proud that M&G Polymers has selected Corpus Christi as the location of its new industrial facility. It brings new investment, new jobs and new opportunities for growth, both upstream and downstream, in our local industry," said Mayor Joe Adame, City of Corpus Christi.

Corpus Christi Regional Economic Development Corporation anticipates direct and indirect payroll resulting from the new plants to reach $780 million over 10 years and expects total economic impact of the new plants on Corpus Christi to be $4.8 billion during that same time.

Roland Mower, CEO of the Corpus Christi Regional Economic Development Corporation, responded to the good news: "Corpus Christi Regional Economic Development Corporation is pleased to welcome M&G Polymers to the Coastal Bend Region. They will be able to leverage superior logistics optionality and the many benefits of our industrial infrastructure."

Construction time for both the PET and PTA plants is estimated to be 30 months. The engineering, project management, sourcing and construction management will be performed by Chemtex Global S.A., a subsidiary company of the M&G Group.

About M&G Group

M&G Group is a family owned chemical engineering and manufacturing group headquartered in Tortona, Italy. M&G Group operates in the PET resin industry through its wholly-owned holding company Mossi & Ghisolfi International S.A. (M&G International). M&G International is presently the largest producer of PET resin for packaging applications in the Americas, with a production capacity in 2010 of approximately 1.6 million tons per annum.

Chemtex, the R&D and engineering arm of the M&G Group, has built the two largest PET plants in the world, both owned by M&G (Suape, Brazil, and Altamira, Mexico). Chemtex has wide EPC experience and has been involved in several PTA projects with different technologies. Chemtex, which employs over 1,000 engineers, has also developed a revolutionary technology for the production of simple and clean sugars from biomasses. A large industrial demonstration plant is being built in Italy (40kt/year of ethanol, start-up Q2 2012).

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