MOSCOW (MRC) -- Celanese will proceed with permanently reducing capacity by 50% at its acetate tow production facility in Lanaken, Belgium, as previously proposed, said the producer on Tuesday.
This decision results from continuing declines in the global demand for acetate tow products, especially in Europe, according to company officials.
The Celanese management in Lanaken has completed the consultation process with employee representatives and agreed upon a social plan aimed at minimizing the effects of the restructuring measures on the impacted employees.
"The declines in geographic demand, anticipated industry consumption patterns, and the site’s high costs led us to proceed with the proposed 50% capacity reduction at the Lanaken facility," said Scott Sutton, president of the materials solutions business at Celanese. "We are fully committed to treating all affected employees respectfully and would like to express our sincere appreciation for their hard work and loyalty to the company throughout the years."
Celanese says it will continue to reliably supply customers from its acetate tow facilities in Narrows, Virginia; Ocotlan, Mexico; and from the remaining capacity at the Lanaken site located in the Belgian province of Limburg, which will continue to operate with a nameplate capacity of approximately 26,000 tpy.
As a result of the restructuring measures at the Lanaken facility, Celanese expects to record exit costs of approximately USD35 million to USD40 million, with the majority of cash outflows occurring over the next six months. These expenses will be excluded from the company’s adjusted earnings per share and operating EBIT measures.
As MRC wrote before, in June 2015, Jacobs Engineering Group was awarded an engineering, procurement and construction management (EPCM) contract from Celanese Corp. for the construction of a vinyl acetate ethylene (EVA) emulsions production plant at Jurong Island, Singapore.
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of USD6.8 billion.
MRC