Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”), together with two other companies (Alpek, S.A.B. de C.V. and Indorama Ventures Holdings LP), have formed a joint venture to acquire M&G’s PTA/PET plant in Corpus Christi, Texas on 21 Mar 2018. The aforesaid project includes annual planned capacity of 1.3 million tons of PTA with PET capacity of 1.1 million tons. The three-party toll manufacturing joint venture has received regulatory clearance from the United States Federal Trade Commission on 21 December 2018 (EST) and has completed the acquisition on 28 December 2018 (EST).
The aforesaid project has been the world’s largest vertically integrated PTA/PET plant and the single largest PTA plant in the U.S. During the fourth quarter of 2017, the original company (M&G) filed for bankruptcy protection under Chapter 11 to sell its own assets. In addition, the aforesaid plant is located near Gulf of Mexico, where is close to the supply chain of international petrochemical players. FENC would benefit from not only relatively cheap and sufficient feedstock but also the convenient access to American market via sea route or railway. Each party will independently procure its raw materials and have the right to receive one third of the production of PTA and PET produced at the aforesaid project upon completion.