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DAK Americas CEO talks Cape Fear site closure

Jorge Young, DAK Americas president & CEO, told PlasticsToday there are many factors that contributed to shutting down its Cape Fear site, near Wilmington, NC."Aging technologies and infrastructure; DAK's ability to leverage more efficient assets in its multi-site network without affecting the ability to continue to supply our valued customers," were two reasons given by Young.

Heather Caliendo

June 25, 2013

2 Min Read
DAK Americas CEO talks Cape Fear site closure

DAK Americas, one of the largest PET producers in the world, announced on June 19 that it would cease operations at the Cape Fear site, which was built in the late 1960s and acquired by the company in 2001 from DuPont.

About 350 full-service employees and 250 contract workers are employed on-site to produce PTA, PET resins and polyester staple fibers. The PET resin capacity of the facility is 205,000 tons/yr. The site is anticipated to close by September 2013.

The company said it remains dedicated to the polyester value chain and supplying products and services through its six remaining production facilities in the Americas.   

"The closure of the Cape Fear site will not have a significant impact on the general supply-demand balance for PET as a whole; however, it will allow DAK to leverage its assets to better serve its customers," Young said. "We have no further plans to reduce capacity at any other facility."

In March, PET manufacturer Indorama Ventures Public Company Limited told PlasticsToday that North America represents the company's best market for PET today.

Richard Jones, Indorama's spokesman, said that the company sees around 3% growth in demand each year.

"The reason it continues to grow is that PET is the most cost-effective packaging material and is eating into the market share of glass and aluminum each year," he said. "On a global basis, PET continues to grow and is the packaging material of choice today for younger economies."

Indorama announced plans to invest $190 million to build an additional PET manufacturing plant adjacent to its current site near the Tennessee River in Decatur. Operated by its subsidiary, AlphaPet, the plant will produce about 500,000 tons of resin per year and will employ an additional 75 full-time workers, taking total employment on this site close to 200 when the project is complete.  

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