Corpus Christi Polymers to resume work on M&G plant in August, set for 2025 start date

Corpus Christi Polymers announced this week it would resume construction in August on its Corpus Christi plant — which it purchased partially constructed from M&G USA Corp. after the corporation filed for bankruptcy — and is set for an early 2025 commission date.

Once completed, the proposed Corpus Christi plant, which was purchased for $1.1 billion, would be the largest of its kind in the world and employ 250 full-time employees, according to a Monday news release. At the peak of construction, about 2,400 workers would be working on the project.

"With the full support of the joint venture partners, we look forward to building a world-class organization and state-of-the-art asset," Corpus Christi Polymers’ chief executive, Russell Wilson, said in the news release.

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In February 2019, Corpus Christi Polymers had planned to begin construction later that year and was shooting for a May 2020 commission date. It did not meet that time. Why that timeline changed was not clear. A public relations official for the company did not answer questions from the Caller-Times about that and the facility by Thursday afternoon.

The plant’s construction has been troubled in recent years.

Plastics manufacturer M&G filed for bankruptcy in October 2017, halting work. In bankruptcy filings, the company claimed the facility — which will be capable of producing between 1.1 million and 1.3 million metric tons of purified terephthalic acid, known as PTA, and polyethylene terephthalate, or PET — was 85% complete.

PET is a form of polymer used in the production of plastic bottles or containers for food packaging and beverages. PTA can be used to make polyester fibers for clothing, bed sheets, curtains and bedspreads.

Located at 7001 Joe Fulton Corridor, Corpus Christi Polymers is a joint venture of Mexican chemical manufacturing company Alpek S.A.B. de C.V., Indorama Ventures Holdings LP — a subsidiary of Indorama Ventures Public Company Limited — and Far Eastern Investment Holding Limited.

In a written statement to the Caller-Times, a Port of Corpus Christi spokesperson said the port commended the joint venture for its plans to resume construction on the Inner Harbor facility, saying, "Throughout unforeseen financial hardships and the pandemic, (Corpus Christi Polymers) continued to be an outstanding business partner, operating in full compliance with all terms of its leases with the port authority."

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"With construction expected to resume later this summer, CCP will be on track for final completion and commissioning, joining hundreds of other Port of Corpus Christi customers in generating well-paying jobs in the Coastal Bend and contributing to our overall economic health,” the port spokesperson wrote.

Once operational, the facility will be subject to restrictions by the Federal Trade Commission.

In December 2018, the FTC placed restrictions on the three companies making up the joint venture because they control nearly 90% of North American PET capacity, according to the federal commission’s analysis.

Corpus Christi Polymers is mandated to operate as an independent toll manufacturing plant, and FTC prohibits the three companies from receiving, sharing or using any confidential information regarding the facility.

The three companies are also not allowed to own more than a one-third equity interest in Corpus Christi Polymers, or to own rights to more than one-third of the plant's PET and PTA capacity, without prior approval from the FTC. If a joint venture member does not use its full allotted capacity, the other two companies can use that without FTC approval.

The company also possesses permits from the Texas Commission on Environmental Quality to construct a seawater desalination plant — which is notable because both the Port of Corpus Christi and the city of Corpus Christi are seeking similar permits.

This article originally appeared on Corpus Christi Caller Times: After three years, construction resumes on Corpus Christi Polymers