ALPEK and INVISTA Restructure the Ownership of their Joint Venture
Wed Sep 28, 2005
Monterrey, N. L., Mexico, September 28, 2005.- Alpek, ALFA's petrochemical group, announced today that it had reached an agreement with Fibers Mexico, a Mexican affiliate of INVISTA, to restructure their 50-50 joint venture that manufactures spandex Lycra®, nylon fibers and caprolactam (raw material for nylon) and nylon polymer in Mexico.
The partners will split the operations in a way that allows each to concentrate on those segments where they have the greatest strategic interest. The restructuring of the joint venture is effective today.
As a result of the transaction, Fibers Mexico will incorporate into its own business the nylon 6 textile fiber, the nylon 6,6 textile fiber and the spandex Lycra® plants located in San Pedro Garza Garcia, Nuevo Leon. At the same time, Alpek will have full ownership of the caprolactam operations located in Salamanca, Guanajuato and the nylon polymer plant in Ocotlan, Jalisco.
Jose de Jesus Valdez, Alpek's President, commented, “With this operation we continue to move forward on Alpek's strategy of focusing on those businesses in the markets we serve with the greatest potential for growth and profitability. Apart from the caprolactam operation and the nylon polymer plant, those businesses are PTA, PET, EPS and polypropylene, where we currently are making investments to improve our strategic position”.
“INVISTA is committed to the textile industry and this investment demonstrates that commitment,” said Bill Ghitis, President, INVISTA Apparel. “Our focus is to bring value to the apparel industry by delivering market back innovations based on consumer insights and linked to our brands.”
Alpek is a Mexican company involved in petrochemicals, synthetic fibers and plastics. The company is the second largest PTA producer in North America and is an important participant in PET production in the United States. Furthermore, Alpek is a leading participant in the Mexican polypropylene and expanded polystyrene markets. In 2004, Alpek reported sales of more than US$ 2,700 million and employed more than 4,500 people in its Mexico and United States plants.
INVISTA is an integrated polymer, intermediates and fibers business with a global presence on six continents. It operates five major businesses: Apparel; Interiors; Intermediates; Performance Fibers; and Polymer and Resins. INVISTA delivers exceptional value for its customers through market insights and technology innovations, along with a powerful portfolio of the most recognized global brands and trademarks in their respective industries including LYCRA ® and TACTEL ® among others.
For further information:
ALFA, S.A. de C. V.
Corporate Communications Vice-President
Phone (011-52-81) 8748 1207
Tel. 52 81 8748 1207s.