We close this chapter as a strengthened, profitable and financially sound company.
The company successfully completed its restructuring process under Law 550 of 1999 to the Colombian Financial Superintendency, which began in 2002. As a result of the restructuring process, Enka has become:
- Leader in PET recycling in Colombia with the largest plant in South America, manufacturing high value-added products and completely closing the bottle cycle, and on the verge of becoming one of the world leaders with the new plant.
- The main producer of nylon 6 in the Americas, and a strategic ally of the main tire manufacturers in the world.
- The largest manufacturer of nylon and polyester synthetic fibers and filaments in the Andean region with an export focus.
Medellín, January 19, 2022.
With the satisfaction of having fulfilled its commitments to creditors, financial institutions, suppliers, bondholders and government entities, and being a company immersed in the circular economy, profitable and financially sound, Enka successfully completed the restructuring agreement under Law 550 of 1999. With indebtedness amounting to COP 320 billion, similar to its sales, in 2002 the organization underwent this process that lasted 19 years with the objective of making profound changes that would allow its sustainability in the future.
"It is a source of pride and a huge boost for Enka to be announcing that we successfully completed the restructuring agreement under Law 550 of 1999. This milestone is the result of a formula composed of several elements, the first of course, the tireless work of a committed and excellent human talent, a strict control of costs and expenses from different fronts and the ability to understand the environment to anticipate the needs and also respond to them, which allowed us to innovate in products and access new markets. Today we can say with certainty that we have regained the trust of all our stakeholders and that we have consolidated our position as one of their strategic allies in the construction of shared value". Álvaro Hincapié Vélez, President of Enka de Colombia.
To face the new challenges, the company made an ambitious commitment to technological investment and diversification of markets and destinations, offering innovative products with greater added value, which has been key to its strengthening. Enka has also consolidated its position as the leading producer of nylon 6 yarns and canvas for tires in the Americas and a strategic ally of the world's leading tire manufacturers, as well as the leading producer of synthetic fibers and filaments in the Andean region with an export focus.
As part of the agreement, Enka began a debt capitalization plan, which led to its listing on the Colombian Stock Exchange in 2007, capitalizing COP 180 billion that year alone and close to COP 226 billion throughout the agreement, corresponding to 70% of the initial debt.
Enka's commitment to the country and future generations, the knowledge acquired throughout its history and the new consumer needs for products that are friendly to the planet, led the company to transform its strategy and consolidate itself as a benchmark in circular economy.
Thus, since 2009, Enka has put into operation three modern recycling plants and is building a new one, becoming the leading organization in the recycling of post-consumer PET containers in South America. One of these plants is dedicated to transforming recycled PET bottles into EKO(R)Fibers, mainly for household linens and geotextiles, Another to transform these bottles into recycled resin suitable for contact with food and beverages -EKO(R)PET- (Bottle to Bottle) and the last to take advantage of the caps and labels that come with PET containers and convert them into polyolefins -EKO(R)PE and EKO(R)PP-, completely closing the bottle cycle and expanding the portfolio to new recycled materials. The new Bottle-to-Bottle plant, which starts operations at the end of 2022, is 30% complete and will position Enka as one of the world leaders.
This chapter closes with a strengthened, profitable and financially sound company, with a net debt level close to zero and ample financing capacity to continue undertaking our growth plans.
Enka is fulfilling its goal of transforming the ordinary into the extraordinary by delivering high quality, sustainable and socially committed products from recycled post-consumer materials.
Company with more than 55 years of experience in the market, leader in the recycling of PET bottles in Colombia, the main producer of filaments and the largest producer of nylon 6 tire canvas, focused on circular economy, innovation and high engineering.
Today the organization has the largest PET recycling plant in South America, the largest post-consumer bottle collection network in Colombia through its subsidiary Eko Red, a portfolio with more than 50% of its products made from recycled raw materials and is building a new plant for the manufacture of food grade recycled PET resin that will make it one of the world leaders.