Celanese to shut down two plants in France, Spain

10 December 2013 22:37 Source:ICIS News

HOUSTON (ICIS)--Celanese plans to shut down its acetic anhydride plant in Roussillon, France, and its vinyl acetate monomer (VAM) plant in Tarragona, Spain, the US-based acetyls producer said on Tuesday.

Celanese announced the shutdowns after completing consultation processes in both countries, it said.

All activities at the plants should cease by the end of the year, and Celanese plans to decommission both facilities, it said.

Celanese expects the shutdowns will cost it $100m-110m (€73m-80m), including $35m-45m of non-cash asset impairments, the company said. Most of these charges will be recorded in the fourth quarter.

However, the shutdowns should save Celanese $20m-30m in 2014, the company said.

Celanese decided to close the plants after it completed a review of its overall corporate strategy, which included an assessment of its plants, the company said.

"Specifically, in support of the company's acetyl portfolio, the manufacturing footprint strategy favours integrated production sites that provide critical economies of scale," Celanese said.

($1 = €0.73)

By Al Greenwood