The company Alpek announced its focus on the execution of key strategic initiatives to strengthen its competitiveness and capitalize on its position as a solid regional supplier. The CEO reiterated the commitment to assess opportunities to strengthen financial position and cash flow generation through various strategies.
Clear cost reduction objectives were established starting in 2023, which included geographic optimization, organizational restructuring, and improvements in energy supply agreements. In the last quarter of 2024, the company made the decision to cease operations at one plant, achieving significant savings. They estimate approximately $100 million in annualized savings by mid-2025 from these actions.
Regarding financial results, Alpek reported that in the fourth quarter of 2024, net sales increased by 17% compared to the same period the previous year. Operating cash flow increased by 126%, highlighting a rise in total volume for the quarter. 4.7 million tons were reached on an annual basis, reflecting stable demand.
In relation to the Polyester segment, increases in benchmark margins were observed in Asia and China, while Paraxylene prices in the U.S. decreased. Despite an environment marked by seasonal effects, Alpek achieved a comparable annual cash flow that exceeded expectations. The CEO highlighted that during 2024, the company successfully prioritized its cost competitiveness and free cash flow generation.
