Celanese to close Mexico acetic acid plant, rejigs acetate business

17 December 1999 17:22  [Source: ICIS news]

LONDON (CNI)--German chemicals company Celanese announced Friday it is to close its acetyl chemicals plant at Celaya, Mexico and restructure its acetate products businesses, affecting some 745 jobs.

Knut Zeptner, chief executive officer of Celanese Chemicals and Acetate, said Celanese is closing the 65 000 tonne/year acetic acid capacity plant as part of its strategy to concentrate most of its acetic acid production at world-scale plants. Customers will be supplied from its Clear Lake, Texas plant or its new acetic acid and acetate esters plant in Singapore, which opens in H1-2000, he added.

Celanese said the Celaya acetic acid plant, together with the acetic anhydride, acetone derivatives and acetate esters units, will close by December 2000 and will affect 300 employees. To offset the closure, Celanese will increase acetate ester production at its other facilities and start acetone derivatives production in Cangrejera, Mexico.

The Germany company also revealed it will consolidate its acetate filament business at three sites - Ocotlan in Mexico, Narrows in Virginia and Lanaken in Belgium - over the next two years.

Acetate filament production will be phased out at the Rock Hill, South Carolina plant by the end of Q3-2001, affecting about 445 employees. At the same time, filament production at Ocotlan will be "substantially" increased, a Celanese spokeswoman told CNI.

The company will shut its Ocotlan acetate flake unit by Q3-2000 and concentrate production of acetate flake at the Rock Hill plant. Acetate flake is used to make both acetate filament and filter tow.

In addition, the filter products business will permanently reduce annual acetate tow capacity at Ocotlan by 10 000 tonne/year by Q3-2000.

No specific acetate plant capacities were disclosed, but a Celanese spokeswoman said the company's global acetate filament production will be about 64 000 tonne/year in two years time. Celanese currently produces 64 000-70 000 tonne/year, she said.

Zeptner said: "Our Ocotlan site will take on a greater operational role so that we can better supply the rapidly globalising textile industry. When the restructuring is complete in late 2001, Celanese expects to be optimally positioned geographically and able to operate its facilities at maximum efficiency."

ICIS Copyright © Reed Business Information 2009

Author: Anna Jagger
+1 713 525 2653

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.