Indorama Ventures Limited has announced that the company decided to extend the pre-construction period of the PTA-PET plant in Corpus Christi, Texas through the end of 2020.
Christi Polymers LLC (CCP), a joint venture among certain subsidiaries of Indorama Ventures Holding, Alpek and Far Eastern Investment (Holding) Limited was created to acquire and complete construction of an integrated PTA-PET plant in Corpus Christi.
Indorama indicated that the current construction estimate is considerably higher than the estimate at the time of completion of the acquisition, primarily due to higher labor costs prevailing in the Gulf Coast region.
The Board of Directors of the CCP, consisting of members of all three JV partners, have agreed to extend the approval of the project through 2020 to optimize project construction efficiency in order to build a competitive PTA-PET asset at the site.
Indorama mentioned that it did not plan to make any additional cash contribution during the year 2020. During this period, the site will be properly maintained for the smooth restart of the construction.
The completion of the project is expected to be in 2023.