Alpek to Shut Down Fayetteville PET Facility, Citing Strategic Realignment

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Alpek, S.A.B. de C.V. (“Alpek”), a leading petrochemical company headquartered in Monterrey, Mexico, has officially announced its decision to permanently cease operations at its Cedar Creek facility in Fayetteville, North Carolina, by July 31, 2025, as part of a broader global optimization plan.

According to a press release issued on May 30, 2025, the closure aligns with Alpek’s long-term strategy to streamline operations, consolidate scalable assets, and enhance cost efficiency across its global network. The facility, which was acquired in 2001, has a production capacity of 170,000 tons of PET resin and approximately 35,000 tons of recycled PET (rPET) flake annually.

The closure will result in the layoff of 180 non-unionized employees, as disclosed in a WARN notice filed with the North Carolina Department of Commerce. The layoffs are permanent, and no bumping rights will apply. Alpek has expressed its intent to work with the North Carolina Employment Security Commission to provide transition support for affected workers.

Through this restructuring, Alpek expects to achieve annualized cost savings of approximately $20 million by 2026. The company emphasized that it will reallocate production within its regional and global network to continue delivering high-quality and sustainable products to its customers.

“Through this optimization, which is part of Alpek’s cost reduction strategy initiatives, the company will be able to generate approximately $20 million in annualized savings on a run-rate basis, effective by 2026,” Alpek stated. “This reinforces Alpek’s long-term vision to solidify its core business and strengthen its financial position.”

This is Alpek’s second U.S. facility closure in under a year. In November 2024, its subsidiary Styropek closed its Monaca, Pennsylvania facility, affecting 140 employees. The back-to-back closures reflect a strategic shift amid rising global competition, changing sustainability expectations, and the need for operational efficiency.

According to industry observers, increased global competition, sustainability demands, and shifting consumer preferences for recycled materials have placed mounting pressure on manufacturers to consolidate and modernize production strategies.

Source: Alpek