Methanex delaying major spending on American plant expansion
By COLLIN GALLANT on April 3, 2020.
cgallant@medicinehatnews.com@CollinGallant Methanex is delaying major spending on a U.S. plant expansion for 18 months as it conserves credit in the wake of global economic uncertainty, the company announced on Wednesday. The facility, in Geismar, Louisiana was to see US$800 million in construction this year, but that amount will be reduced by $500 million as the company evaluates market conditions and global economic uncertainty, CEO John Floren said in a press release. “We are taking proactive steps during these unprecedented times to further strengthen our balance sheet, while maintaining financial flexibility,” Floren stated in the release. “While we anticipate lower methanol demand in the near-term based on reduced manufacturing activity, we think it’s too early to accurately forecast how long or how extensive the impact of COVID-19, and the resulting economic impact will be.” Last month the company suspended production at plants in Chile and Trinidad indefinitely, representing about one-fifth of the company’s production. There has been no statement about operations in Medicine Hat. Other near-term spending and maintenance plans were also reduced by $25 million. The global company also stated that out of 1,500 employees, four in three different countries had tested positive for the Coronavirus, but were isolating and no disruption to operations was expected. 10-9
