The new factory, which will generate approximately 250 new jobs and 700 indirect positions, will be built alongside another plant producing 1.2 million tons of purified terephthalic acid (PTA).
The PET site is expected to start up in 2015 and the firm said the “majority” of the output will be for food and beverage packaging.
M&G said the single line plant could be expanded by 10-15% if the demand for PET resin was there.
The plant will employ the same technology as the single reactor Suape (Brazil) PET plant, including the firm’s EasyUp SSP technology.
Marco Ghisolfi, CEO of M&G's polymers business unit, said: "The synergies of the location, adding to the unmatched size and integration efficiency of the plant, will further remove logistic costs, making our operation by far the world lowest cost."