Methanex reaches ‘milestone’ with Geismar plant

Methanex spent $145 million during the fourth quarter on the two methanol plants it is moving to Geismar.

The Vancouver, British Columbia, company also reached “an important milestone” with all of the major equipment for Geismar 1 now onsite, according to John Florien, Methanex president and chief executive officer. Production at the first plant is expected to begin in late 2014, with the second plant, Geismar 2, coming online in early 2016, when the supply of methanol will be limited.

Florien’s comments were part of the Canadian company’s fourth-quarter earnings report.

Methanol is used as feedstock in making plastics, textiles, paint and plywood. The combined production capacity of the plants is 1.2 million tons per year.

Methanex expects to spend an additional $635 million on the Geismar projects, Florien said. The amount does not include capitalized interest.

Methanex reported net income jumped to $167 million, or $1.72 per share for the fourth quarter, compared with $117 million, or $1.22 per share, a year ago. For 2013, Methanex reported net income of $471 million, or $4.88 per share, compared with $180 million, or $1.90 per share, a year earlier.