Celanese Wraps Up Strategic Moves Across Global Acetyl Chain Operations

Celanese Corporation (NYSE: CE), a renowned global provider of specialty materials and chemicals, has disclosed significant strategic achievements at its facilities in Clear Lake, Texas, and Nanjing, China. These milestones are aimed at bolstering the competitive cost structure, sustainable footprint, and operational adaptability of the Acetyl Chain (AC) business, enabling it to cater to future demand growth. The key developments include:

•  Commissioning of a New 1.3 Million Ton Clear Lake Acetic Acid Expansion: In March 2024, Celanese initiated operations at a state-of-the-art acetic acid expansion facility in Clear Lake. This expansion is believed to be the world's most cost-effective and environmentally friendly acetic acid plant. This achievement comes on the heels of the recent revelation regarding an ISCC-certified carbon capture and utilization (CCU) initiative. This project expanded the capacity of the Fairway Methanol joint venture with Mitsui & Co., Ltd. by 130 kt, simultaneously capturing 180 kt of CO2 industrial emissions. The resulting low-carbon methanol enables the production of low-carbon ECO-CC AC and Engineered Materials downstream products, catering to a wide array of consumer applications.

• Startup of a New Vinyl Acetate Ethylene (VAE) Unit in Nanjing: Additionally, Celanese inaugurated a new VAE unit in Nanjing, along with the successful completion of global, low-capital downstream redispersible polymer powders (RDP) debottlenecking projects. The new VAE unit has augmented capacity by 70 kt, significantly enhancing the Acetyl Chain's capability to capitalize on its integrated product chain in the Asia region. This move is particularly significant in meeting the escalating regional demand for both VAE and downstream RDP products.

• Extension of CO Phase II Contract in Nanjing: Celanese's affiliate, Celanese (Nanjing) Chemical Co. Ltd., has prolonged its CO Phase II agreement with Nanjing Chengzhi Clean Energy Co., Ltd. This agreement secures the supply of carbon monoxide, a vital feedstock for acetic acid production, to the Nanjing facility. The extended contract ensures a reliable, long-term supply of carbon monoxide for the 1,200 kt acetic acid plant, offering additional operational flexibility.

Mark Murray, Senior Vice President of Acetyls at Celanese, commended the outstanding efforts of the teams in Clear Lake and Nanjing. He emphasized their collaborative endeavors, both within the company and with esteemed partners like Chengzhi, in successfully executing pivotal operational investments. These initiatives have significantly enhanced Celanese's operational flexibility and positioned the company to achieve a projected increase in adjusted EBIT of $100 million, reaching $1.4 billion as previously announced. Murray highlighted that these strategic moves not only bolster Celanese's capability to meet customer demands with a versatile and cost-effective approach but also set the stage for future global and regional expansion.

With its expansive manufacturing and distribution capabilities, Celanese stands as a leading producer of acetic acid, a fundamental chemical utilized in various industries such as paints, adhesives, food packaging, and construction materials.