Wellman announces PET resins expansions

Wellman, the US-based manufacturer of polyester products used in packaging resins, has announced that it is taking steps to expand its PET resins capacity by approximately 415 million pounds over the next eighteen months, at an estimated capital cost of $68 million (€68.5m).

In the first stage, Wellman and Voridian Company, a division of Eastman Chemical Company, announced the signing of an agreement resulting in increased North American polyethylene terephthalate (PET) bottle resin capacity.

Under the agreement, Wellman will provide amorphous resin capacity from converted fibre chip lines at its Palmetto, South Carolina facility while Voridian will supply solid-stating capacity from multiple North American sites. The resulting PET products will be divided between the two companies and each company will market and sell the PET resin independently. By matching existing assets, the two companies intend to increase PET resin capacity by up to 260 million pounds per year. Initial production is scheduled to begin in the first quarter of 2003.

Tom Duff, Wellman's chairman and chief executive officer, said: "This agreement between Wellman and Voridian allows both parties to utilize their individual assets in the most effective and efficient manner. This will result in a significant expansion of PET resin supply at low capital cost to meet growing demand in the NAFTA region."​Additionally, Wellman today announced its plans to modify the existing polyester fibre line at its Pearl River, Mississippi facility to enable this unit to produce either solid stated PET resin or polyester fibre. This project is expected to result in approximately 285 million pounds per year of additional PET resins capacity beginning the first quarter 2004.

Mr. Duff said: "This relatively low cost modification of our existing fibres line will allow us to take advantage of the expected growth in the PET resins industry, while maintaining our ability to respond to future fibre needs."​