The Evolving Polyethylene Terephthalate (PET) Marketplace

I worked this up for an upcoming article on the PET resin industry. After being battered for the better part of the last decade, the highly fragmented industry is consolidating. DAK Americas, which is owned by Mexico’s Alfa Group, is buying the remnants of Eastman’s business. Indorama, of Thailand, is buying Invista. (Historically that last business was KoSa. Before that it was Hoechst’s polyester business.)

2010 2011
Eastman 15 Indorama 33
Indorama 14 Wellman 8
Wellman 9 DAK 29
DAK 15 M&G 18
M&G 19 Nan Ya 9
Nan Ya 9 Selenis 3
Invista 19
Total 10.0 billion lb. Total 10.4 billion lb

These figures are capacity numbers for the NAFTA region. And it is PET packaging resin only, not fiber. I compiled it based on company documents and interviews, except in the case of Selenis, which comes from published reports. Selenis is a newcomer to the industry. The company is converting a shuttered polytrimethylene terephthalate plant near Montreal that Shell Chemical built with SGF earlier last decade. The project might be a little bit of a question mark given how big the largest players are getting. From what I understand–Selenis officials aren’t returning my calls–the plant has been delayed.

Interestingly, when I asked Indorama if they are planning on closing any capacity. They told me “absolutely not.” They are also keen on expanding in Mexico.

UPDATE: Related to PET, sort of.  Eastman Kodak’s Q4 profit dropped 95%. The market capitalization of Eastman Chemical is now more than 6X that of its former parent.

Author: Alex Tullo

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