Celanese to close UK acetate plant in consolidation strategy

27 April 2010 12:47  [Source: ICIS news]

LONDON (ICIS news)--Celanese plans to close its UK acetate manufacturing plant in Spondon, Derbyshire, as part of a proposed consolidation of its global acetate manufacturing operations, it said on Tuesday.

The consolidation would strengthen its competitive position, reduce fixed costs and align future production capacities with anticipated demand, the chemical company said.

Initially, the proposed closure would lead to a non-cash impairment charge of $72m (€54m) in the first quarter of 2010, Celanese said.

If the company proceeded with the closure, Celanese would operate the Spondon plant - which has 460 employees - to late 2011. The company would consult with labour unions over the proposed closure, it said.

Key products manufactured at the Spondon plant include cellulose acetate flake and filter tow. The plant’s nameplate capacity is 41,000 tonnes of acetate tow and 60,000 tonnes of acetate flake, according to Celanese.

Under the proposal, Celanese would optimise its global production network, which includes facilities in Belgium, Virginia and Mexico, as well as joint venture facilities in China, it said.

($1 = €0.75)

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By: Elaine Mills
+44 208 652 3214



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