Celanese Announces Global POM Surcharge in Response to Rising Energy Costs

Rhea-AI Summary

Celanese Corporation (NYSE:CE) announced a global surcharge on its POM products, including Amcel®, Celcon®, and Hostaform®, due to surging global energy prices. The surcharge will take effect from October 25, 2021, with rates set at €0.50/kg in Europe, $0.35/kg in Asia, and $0.30/kg in the Americas. Vice President Juergen Pongratz emphasized the need to share the burden of rising costs with customers, stating that the current energy market instability could persist through winter while the company will monitor conditions regularly.

Positive

• Implementation of a surcharge may mitigate some financial impacts of rising energy prices on the company's margins.
• The company is proactive in addressing cost inflation, signaling strong management responsiveness.

Negative

• Global energy price instability may continue to pressure profit margins.
• The surcharge may lead to customer dissatisfaction or reduced demand for POM products.

DALLAS & AMSTERDAM & SHANGHAI--(BUSINESS WIRE)-- Celanese Corporation (NYSE:CE), a global chemical and specialty materials company, today announced a global surcharge on its portfolio of Amcel®, Celcon®, Hostaform® and other polyacetal (POM) products in response to a recent surge in global energy prices.

The surcharge amounts indicated below will be implemented on all shipments of POM products beginning on October 25, 2021.

Europe	€0.50/kg
Asia	$0.35/kg
Americas	$0.30/kg

“The unprecedented instability present throughout the energy markets, that began this summer, recently accelerated and we have reached the point where Celanese needs to share the burden of the price increases with our customers,” said Juergen Pongratz, Vice President, POM, for Celanese. “Although we believe these conditions will persist through the winter, Celanese will continue to monitor the situation on a regular basis and will adjust the surcharge amounts to reflect the then-current conditions. We understand the impact this may have on our valued customers and hope to see conditions normalize as soon as possible.”

Customers should contact their Celanese account manager for more information.

About Celanese

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2020 net sales of $5.7 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211011005656/en/

Celanese Contacts:

Investor Relations

Brandon Ayache

+1 972 443 8509

brandon.ayache@celanese.com

Media Relations – Global

W. Travis Jacobsen

+1 972 443 3750

william.jacobsen@celanese.com

Media Relations - Europe

Petra Czugler

+49 174 762 8784

petra.czugler@celanese.com

Source: Celanese Corporation

FAQ

What is the date for the Celanese product surcharge to take effect?

The surcharge on Celanese POM products will take effect on October 25, 2021.

What are the surcharge rates for Celanese products in different regions?

The surcharge rates are €0.50/kg in Europe, $0.35/kg in Asia, and $0.30/kg in the Americas.

Why is Celanese implementing surcharges on its products?

Celanese is implementing surcharges in response to a surge in global energy prices.

Who is the Vice President of Celanese mentioned in the press release?

Juergen Pongratz is the Vice President for POM at Celanese.

How is Celanese planning to manage the surcharge situation in the future?

Celanese will monitor energy market conditions regularly and adjust surcharge amounts accordingly.