Celanese proposes consolidation of acetate manufacturing operations

Celanese Corporation, a leading, global chemical company, on April 27 announced it is considering a consolidation of its global acetate manufacturing operations by proposing the closure of its acetate manufacturing facility in Spondon, Derby, United Kingdom. The consolidation is designed to strengthen the company's competitive position, reduce fixed costs and align future production capacities with anticipated industry demand trends.

The company would serve its acetate customers under this proposal by optimizing its global production network, which includes facilities in Lanaken, Belgium; Narrows, Virginia; and Ocotlan, Mexico, as well as the company's acetate joint venture facilities in China. If the company proceeds with the proposed closure, Celanese expects to operate its Spondon facility through late 2011 to ensure a smooth closure process.

Key products manufactured at the Spondon plant include cellulose acetate flake and filter tow. The plant's nameplate capacity is approximately 41,000 tons of acetate tow and 60,000 tons of acetate flake.

The Spondon facility has approximately 460 employees. The company will engage in a consultation procedure with the labor unions associated with the proposed closure.

As a result of the proposed Spondon site closure, Celanese expects to record a non-cash impairment charge of US$72 million during the first quarter of 2010. These expenses will be excluded from the company's adjusted earnings per share and operating EBITDA measures. This project would be expected to meet the company's return criteria for investment in productivity-related projects.

About Celanese
As a global leader in the chemicals industry, Celanese Corporation makes products essential to everyday living. Its products, found in consumer and industrial applications, are manufactured in North America, Europe and Asia. Net sales totaled $5.1 billion in 2009, with approximately 73 percent generated outside of North America. Based in Dallas, the company employs approximately 7,400 employees worldwide.