Alpek announces plans to cease production at EPS facility in Beaver Valley

Monterrey, N.L., Mexico. November 4, 2024 – Alpek, S.A.B. de C.V. (“Alpek” or “the Company”) announced its plans to cease production at the Beaver Valley EPS facility in Monaca, Pennsylvania by January 2025. The site was built in the 1940’s, acquired by the Company in 2020, with an installed nominal capacity of 123,000 tons of EPS, and represents less than 2% of Alpek’s total assets. The Company will transfer most of its EPS production to its other facilities.

The decision follows the Company’s commitment to enhance its competitiveness by optimizing its footprint. This will enable Alpek to capture approximately U.S. $20 million in additional cost reduction savings on a run-rate basis, effective as early as mid-year 2025. This would lead the Company to achieve nearly U.S. $100 million of total savings from its cost structure improvement initiatives that began in 2023.

Alpek will continue seeking ways to create value in the markets it serves, prioritizing, as always, its financial strength.