A financially struggling plastics plant under construction in Corpus Christi will shut down and eliminate jobs unless the Italian parent company receives an influx of funding and liquidity.
The more than $1 billion M&G “Project Jumbo” plastics plant, owned by Italy’s Mossi & Ghisolfi Group, will cease activities within the next two months, cutting about 100 jobs in the process, unless something changes, M&G informed the Texas Workforce Commission.
The warning comes just a couple weeks after Irving construction contractor Fluor said it was slashing 275 jobs at the construction site and pulling out because of M&G’s inaction and financial woes. Also, M&G announced last week it may close its West Virginia chemicals plant.
M&G spokesman Terry Tyzack confirmed the problems in an email response Monday about the Corpus Christi project.
“M&G Chemicals is facing financial difficulties and is working closely with its lenders to address the situation,” Tyzack said. “However, these circumstances require the company to reduce its operating costs and plant construction activity.”
He emphasized that the project isn’t necessarily dead quite yet.
“No decision has been made to permanently shut down operations or construction at this time,” Tyzack added.
However, several contractors or subcontractors have filed suit against the project for alleged nonpayment dating back to 2015. The project was slated for completion last year, which was then pushed back to mid-2017. Now, it may never come to fruition.
If completed, the facility would churn out 1.1 million metric tons a year of polyethylene terephthalate, or PET plastic, which is used to make plastic bottles and more.
Mexico-based chemical supplier Alpek chemicals also has cut off supplies to M&G plants, while expressing skepticism about the continued viability of the Corpus Christi project.
Plastics project under construction in Corpus Christi won’t be completed unless parent company resolves problems