Celanese Updates Acetyl Chain Regional Dynamics

Rhea-AI Summary

Celanese Corporation has declared a force majeure for its Nanjing, China facility due to curtailed production of key Acetyl Chain products like Acetic Anhydride and Vinyl Acetate Monomer. This shutdown is in compliance with government energy consumption targets, impacting downstream products as well. Conversely, force majeure has been lifted for several products in the Western Hemisphere following extreme weather conditions. The company expects no material impact on its third quarter performance from these developments.

Positive

• Lifting of force majeure for multiple products in the Western Hemisphere will improve supply conditions.
• Continued operations of acetic acid production unit in Nanjing.

Negative

• Declaration of force majeure in Nanjing could disrupt product supply and affect revenue.
• Temporary shutdown of acetic anhydride and VAM production may lead to increased costs.

Company Declares Force Majeure for Nanjing, China Facility Due to Curtailed Production; Partially Lifts Western Hemisphere Force Majeure

DALLAS & SHANGHAI--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today confirmed a declaration of force majeure in China for the following Acetyl Chain products manufactured at its Nanjing, China facility:

• Acetic Anhydride
• Vinyl Acetate Monomer (VAM)
• Vinyl Acetate Emulsions
• Redispersible Powders

The Company has temporarily shut down acetic anhydride and VAM production in Nanjing to comply with recent requirements of government departments in order to achieve dual energy consumption targets in the Jiangsu Province in 2021. Similar requirements for reduced energy consumption are being applied broadly on energy-intensive industries across multiple provinces. As a result of the shutdown of VAM production, a declaration of force majeure was also necessary for downstream vinyl acetate emulsions and redispersible powders.

Celanese continues to operate its acetic acid production unit in Nanjing.

Lifting of Western Hemisphere Force Majeure for Certain Acetyl Chain Products

Celanese is pleased to announce that it has lifted force majeure for the following products in the Western Hemisphere:

• Acetic Acid
• Ethyl Acetate
• Acetic Anhydride
• Methyl Acetate
• Dimethylamine (DMA) and Trimethylamine (TMA)
• Methyl Isobutyl Carbinol (MIBC) and Methyl Isobutyl Ketone (MIBK)
• Paraformaldehyde

Celanese declared force majeure on February 18 due to the impacts of extreme winter weather on its operations and supply chain in the U.S. Gulf Coast.

At this time, the force majeure declaration remains in place for the following products:

• Vinyl Acetate Monomer
• Vinyl and Acrylic Emulsions
• Redispersible Powders
• Ethylene Vinyl Acetate

These products remain on force majeure as a result of ongoing interruptions to the availability of raw materials and global logistics.

“In all three of our businesses, we continue to see significant disruptions and volatility across regions,” said Lori Ryerkerk, chairman and chief executive officer. “We do not expect any material impact to our third quarter performance from either of these regional updates for the Acetyl Chain. “Recently curtailed acetyls production in China will further lift already tightened global utilization rates and likely result in elevated pricing conditions that will now extend further into 2022.”

The Company will provide another update on the status of Nanjing production and regional Acetyl Chain dynamics in October when it announces its third quarter 2021 financial results.

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, including the announced acquisition. 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 that could cause actual results to differ materially from the forward-looking statements contained in this release, including with respect to the acquisition. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other 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/20210923005975/en/

Celanese Contacts:

Investor Relations

Brandon Ayache

+1 972 443 8509

brandon.ayache@celanese.com

Corporate Media Relations – Global

W. Travis Jacobsen

+1 972 443 3750

william.jacobsen@celanese.com

Source: Celanese Corporation

FAQ

What caused Celanese to declare force majeure in Nanjing?

Celanese declared force majeure in Nanjing due to recent government energy consumption requirements affecting production.

What products are impacted by the force majeure in Nanjing?

The force majeure affects Acetic Anhydride, Vinyl Acetate Monomer, Vinyl Acetate Emulsions, and Redispersible Powders.

Has Celanese lifted any force majeure declarations recently?

Yes, Celanese has lifted force majeure for several products in the Western Hemisphere, including Acetic Acid and Ethyl Acetate.

How does the force majeure in Nanjing impact Celanese's financial performance?

While there may be supply disruptions, Celanese does not expect a material impact on its third quarter performance.

When will Celanese provide updates on the Nanjing production status?

Celanese plans to provide an update on Nanjing production dynamics during its third quarter 2021 financial results announcement in October.