Celanese to Expand Acetyl Chain Capacities to Strengthen High Value, Downstream Vinyls Portfolio

Rhea-AI Summary

Celanese Corporation (NYSE: CE) announced strategic expansions in its emulsion polymers and vinyl acetate production, focusing on facilities in Nanjing, China, and Frankfurt, Germany. The Nanjing site will see a 50,000KT to 90,000KT increase in vinyl acetate monomer (VAM) capacity, while acetic anhydride production will grow by 10KT annually. New VAE reactors in both locations aim to enhance production by 65KT and 45KT respectively by 2023. Additionally, debottlenecking in Europe will add 20KT to redispersible polymer powders capacity by 2023, strengthening Celanese's market leadership.

Positive

• Expansion of VAM production capacity in Nanjing by up to 90,000KT.
• Additional acetic anhydride capacity to reach approximately 130KT by 2022.
• New VAE reactors to increase capacity by 65KT in Nanjing and 45KT in Frankfurt by 2023.
• Debottlenecking efforts will add 20KT in redispersible polymer powders capacity by 2023.

Negative

• None.

Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today announces further investments to strengthen its commitment to being the world’s foremost emulsion polymers and vinyl acetate producer through facility expansions, new unit builds and key debottlenecking projects in Europe and Asia. Today’s announced expansion plans, highlighted below, point to a growing and robust vinyls portfolio for the company’s Acetyl Chain and derivatives.

Nanjing, China Expansions: VAM and Acetic Anhydride

Solidifying its global vinyl acetate monomer (VAM) capabilities, Celanese is initiating a capital-efficient expansion of its VAM production unit at the company’s world-class chemical industrial park in Nanjing, China. This expansion will support the continued growth of its global acetyls business and serve the needs of customers in the Asia region and globally.

Celanese is expected to initially increase the annual VAM production capacity at its Nanjing facility by 50,000KT to 60,000KT, with a phased approach of up to 90,000KT total of additional annual production capacity expected. The expanded VAM production capacity at the Nanjing facility is made possible via a novel, next-generation proprietary Celanese catalyst and advanced technology package that, when complete, is expected to increase the annual VAM nameplate capacity at the Nanjing facility from approximately 300,000KT to nearly 400,000KT.

Celanese is also planning for a capital efficient 10KT per year expansion of acetic anhydride production at its Nanjing facility, bringing the anhydride nameplate capacity at the site to approximately 130KT by 2022, allowing Celanese to support demand growth.

“Celanese is the global leader by volume in the production of vinyl acetate monomer. Based on our capital cost and the efficiency of production, we believe we have the most advanced manufacturing and technical capabilities of any producer,” said Florian Kohl, Vice President of Celanese’s Global Vinyl Chain businesses. “Celanese is best positioned for growth in the VAM market due to the company’s modern asset base as well as its flexible, cost-advantaged expansion options, combined with the ultra-low capital required of a project of this size and scope.”

Frankfurt, Germany and Nanjing, China Expansions: Vinyl Acetate Ethylene Emulsions

Celanese is also announcing today that it plans to continue its VAE growth at the company’s Nanjing and Frankfurt facilities through the construction of two new VAE reactors, with an increase of approximately 65KT of annual capacity at the Nanjing site by 2023, and an increase of approximately 45KT of annual capacity at the Frankfurt site, also by 2023.

Today’s announcement builds upon the company’s global vinyls expansion program, initiated in January 2020 to expand the emulsion polymers business in the Europe and Asia regions, which will extend the value of its global Acetyls business. Celanese is pleased to report that it is progressing well with these previously announced investment projects (in Frankfurt, Germany and Nanjing, China), which will further strengthen the company’s emulsion polymers and VAE leadership positions.

European Site Debottlenecking: Redispersible Polymer Powders (RDP)

With the April 2020 acquisition of the Elotex business, Celanese further strengthened its derivative expansion program by adding a global redispersible polymer powders product line to help drive growth of VAE emulsions.

Celanese today is also announcing plans to expand its redispersible polymer powders growth through debottlenecking efforts currently underway at the company’s European powders facilities, resulting in an increase of approximate 20KT of annual capacity by 2023.

“As a world leader in the acetyls and derivatives space, Celanese has an exceptional, globally integrated production, distribution and sales network to maximize the Acetyl chain’s downstream optionality and capture growth in key regions and end uses,” concluded Kohl. “Building on a commitment to our global customers, Celanese is making key investments in VAM, VAE and RDP facility expansions, as well as expanding on our ‘green technology’ product development, to deliver on their global growth demands.”

Each of these planned expansions are subject to regulatory approvals in their respective countries of operation, and financial details of each project are not being disclosed at this time.

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 or our blog at www.celaneseblog.com.

Celanese VAM and VAE Global Leadership Positions

Celanese is the largest global producer of ethylene-based VAM by volume and is advancing the use of green technology in the production of polymer emulsions of various types. VAM is the key raw material used in the production of polyvinyl acetate (PVAc), vinyl acetate ethylene (VAE) emulsions and polyvinyl alcohol (PVOH), a precursor to PvB films. VAM is also used to make ethylene vinyl alcohol (EVOH) resins and ethylene vinyl acetate (EVA) copolymers. In addition, VAM is an intermediate used to produce paints and coatings, adhesives, textile finishes, water-soluble films and fibers, and laminated safety glass. VAM can be polymerized in mass, solution, suspension or emulsion.

Forward-Looking Statements: This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company or its customers will realize these benefits or that these expectations will prove correct. There are a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from the forward-looking statements contained in this release. Risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

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FAQ

What are the expansion plans for Celanese Corporation in Nanjing, China?

Celanese plans to expand its vinyl acetate monomer (VAM) production capacity by up to 90,000KT in Nanjing, along with a new 10KT per year acetic anhydride production line.

When will the new VAE reactors at Celanese's facilities be operational?

The new VAE reactors in Nanjing and Frankfurt are expected to increase annual capacity by 65KT and 45KT, respectively, by 2023.

What is the increase in capacity for redispersible polymer powders at Celanese?

Celanese plans to increase its redispersible polymer powders capacity by approximately 20KT through debottlenecking in its European facilities by 2023.

How does Celanese's expansion affect its market position?

The expansions aim to solidify Celanese's leadership position in the global emulsion polymers and vinyl acetate markets, enhancing production capabilities in key regions.