26-01-2015

Methanex starts up one million tonne methanol plant in Geismar, Louisiana

Methanex Corporation announced that on January 24th, 2015, the company successfully produced first methanol from its new 1.0 million tonne plant in Geismar, Louisiana. The plant was relocated from the Company's production site in Punta Arenas, Chile.

John Floren, President and CEO of Methanex commented, "We are pleased to announce that our Geismar 1 plant has successfully started up on schedule and is producing methanol. We expect the plant to ramp up to full production rates over the coming weeks. This accomplishment marks another key milestone in our 2013 commitment to grow our operating capacity by approximately three million tonnes over three years, and it will support our continued growth and strategic focus on global methanol leadership. We continue to make excellent progress on the construction of our one million tonne Geismar 2 plant, and remain on target for methanol production from that facility in late Q1 2016."
 
Mr. Floren added, "Our team has done an excellent job of keeping this complex undertaking of relocating two plants from Chile to Louisiana on schedule. The Responsible Care and safety performance during the different phases of the project has also been outstanding, showing that excellent results can be achieved with commitment and dedication. This project clearly demonstrates 'The Power of Agility™' within our organization. A sincere thanks to all of the team members throughout the organization who have worked so hard to achieve this important milestone."
 
Mr. Floren concluded, "We believe this plant will create significant value for shareholders and add an important new supply source for our customers. The Geismar 1 plant was completed over roughly a two and a half year period, and our estimated total cost for the completion of the two Geismar plants remains approximately $1.4 billion. We believe this represents a substantial schedule and cost savings relative to a new-build plant. With our cash on hand, undrawn credit facility, robust balance sheet, and strong future cash flow generation, we are well positioned to complete the construction of the Geismar 2 facility and meet our other financial commitments."