Celanese to Expand Engineered Materials Compounding Capacity at Three Asia Manufacturing Plants

Rhea-AI Summary

Celanese Corporation (NYSE: CE) has announced a three-year plan to expand its engineered materials compounding capacities in Asia, specifically in Nanjing and Suzhou, China, as well as Silvassa, India. The expansion includes adding approximately 52KT of compounding and long-fiber thermoplastics capacity in Nanjing by late 2023, and 7KT each for nylon compounding in Suzhou and annual compounding capacity in Silvassa, both by early 2022. Financial details are undisclosed, but the initiative aims to enhance the company's competitive advantage in the region.

Positive

• Expansion of engineered materials compounding in Asia reflects strong business growth expectations.
• Additional 52KT compounding capacity in Nanjing by late 2023 strengthens market position.
• Increasing nylon compounding capacity in Suzhou and Silvassa will cater to local customer needs.

Negative

• None.

Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today announces its intent to initiate a three-year plan to expand engineered materials compounding capacities at the company’s Asia facilities, including the locations of Nanjing, China; Suzhou, China; and Silvassa, India.

To support the significant business growth expected, Celanese has begun planning for the following Asia expansion investments:

• Nanjing, China Compounding and LFT Expansion: the intended scope of this project adds approximately 52KT of compounding and long-fiber thermoplastics (LFT) capacity at the company’s Nanjing integrated chemical complex by the second half of 2023.

• Suzhou, China Nylon Expansion: the intended scope of this project adds approximately 7KT of nylon compounding capacity at the company’s Suzhou facility by the second quarter of 2022.

• India Compounding Expansion: the intended scope of this project adds approximately 7KT of annual compounding capacity at the company’s Silvassa, India facility by the first quarter of 2022.

“By continuing to increase our Asia presence in the engineered materials market, Celanese is adapting to local customer needs and gaining a competitive advantage in a complex and changing environment,” said Tom Kelly, Celanese Senior Vice President, Engineered Materials. “Celanese is committed to expanding its leadership position in the region by increasing both compounding and polymer manufacturing capacities and capabilities through greater investments and additions in its Asia network.”

Financial details of these engineered materials compounding expansions are not being disclosed at this time. Additional project details will be announced as further developments are available.

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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210324005883/en/

FAQ

What are the details of Celanese's expansion plan in Asia for 2023?

Celanese plans to expand its engineered materials compounding capacities in Nanjing, Suzhou, and Silvassa over three years, adding significant compounding capacity.

When will the Nanjing expansion for Celanese be completed?

The Nanjing expansion is expected to be completed by the second half of 2023.

How much nylon compounding capacity will Celanese add in Suzhou?

Celanese will add approximately 7KT of nylon compounding capacity at its Suzhou facility.

What is the timeline for the India compounding expansion by Celanese?

The India compounding expansion at the Silvassa facility is projected to be completed by the first quarter of 2022.

What is the strategic goal of Celanese's investment in Asia?

Celanese aims to enhance its leadership position in the engineered materials market by expanding capacities to meet local customer needs.