Alpek, a leading petrochemical company, announced on May 30, that it will cease operations at its Cedar Creek facility in Fayetteville, North Carolina. The closure, slated for July 31, 2025, is part of a broader initiative by Alpek to optimize its global manufacturing footprint and enhance its financial position through cost reduction and strategic asset allocation.

The Cedar Creek plant, which Alpek acquired in 2001, has been a key operational site with an installed capacity of 170,000 tons of PET resin and approximately 35,000 tons of recycled PET (rPET) flake production. Its closure marks a notable shift in Alpek's operational strategy, moving towards a more streamlined and efficient global network.

According to the company's official statement, this decision aligns with Alpek’s long-term vision to focus on its "more competitive and scalable assets." The company emphasized its commitment to its customer base, assuring that production will be reallocated across its extensive regional and global network. This reallocation aims to ensure the continued supply of high-quality products and sustainable solutions without interruption, leveraging the company's diverse manufacturing capabilities spread across various geographies.

This move is also a critical component of Alpek’s ongoing Cost Reduction Strategic Initiatives. By ceasing operations at the Cedar Creek facility, the company anticipates generating substantial annualized savings, estimated at approximately U.S. $20 million on a run-rate basis. These savings are expected to become effective by 2026, contributing significantly to Alpek's financial health and bolstering its long-term profitability. The company highlighted that this optimization reinforces its commitment to solidifying its core business and strengthening its financial position in a highly competitive global market.

The closure of the Cedar Creek facility reflects a growing trend within the petrochemical industry, where companies are increasingly scrutinizing their asset portfolios to maximize efficiency, reduce operational costs, and adapt to evolving market demands. For Alpek, this strategic recalibration appears to be a proactive measure to enhance its competitive edge and ensure sustainable growth in the coming years.

While the immediate impact on the Fayetteville community and the employees at the Cedar Creek facility is yet to be fully detailed, such closures typically involve comprehensive plans for employee transition, including potential severance packages and assistance with job placement. Alpek’s statement did not elaborate on these aspects, but companies undertaking such significant operational changes usually have protocols in place to manage the human resource implications.