Celanese to close two European plants in 2008

23 May 2007 18:47  [Source: ICIS news]

By Al Greenwood

HOUSTON (ICIS news)--Celanese said on Wednesday that it is closing its plants in Warrington, UK, and in Guardo, Spain, part of a plan to consolidate its emulsions and polyvinyl alcohol (PVOH) business.

As part of the plan, Celanese will also shift its emulsion and PVOH operations to other plants. The consolidation portion of the plan covers the company's plants in Europe and North America.

Celanese should complete the closings and consolidations in 18 months, said Jeremy Neuhart, company spokesman.

Celanese is not releasing how many plants could be affected by the consolidations, Neuhart said. However, the company does expect that about 150 employees will be affected, either through layoffs or through relocations.

Through the plan, Celanese should bring production closer to customers, reduce costs, remove underused assets and make the most of its existing capacity, Neuhart said.

Celanese expects to reveal more details of the plan when it releases its second-quarter earnings in July, Neuhart said.

The restructuring is part of a broader plan to add, by 2010, $300m-350m (€222m-259m) to the company's earnings before interest, taxes, depreciation and amortisation (EBITDA), he said.

The emulsions and PVOH restructuring should contribute $50m in EBITDA, Neuhart said. Other sources will come from stock buybacks, Asian expansions and a corporate-wide cost-cutting programme, he said.

The consolidation plan resembles an earlier plan, under which Celanese restructured its acetate business, Neuhart said.

($1 = €0.74)

By: Al Greenwood
+1 713 525 2653

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