Celanese Corp. (CE) Affirms Plans to Trim Production at Belgium Acetate Low Production Facility

Celanese Corp. (NYSE: CE) confirmed it will proceed with permanently reducing capacity at its Lanaken, Belgium, acetate tow production facility by 50 percent, as previously proposed. This decision results from continuing declines in the global demand for acetate tow products, especially in Europe.

The Celanese management in Lanaken has completed the consultation process with employee representatives and agreed upon a social plan aimed at minimizing the effects of the restructuring measures on the impacted employees.

“The declines in geographic demand, anticipated industry consumption patterns, and the site’s high costs led us to proceed with the proposed 50 percent capacity reduction at the Lanaken facility. We are fully committed to treating all affected employees respectfully and would like to express our sincere appreciation for their hard work and loyalty to the company throughout the years,” said Scott Sutton, president, Materials Solutions for Celanese.

The company will continue to reliably supply customers from its acetate tow facilities in Narrows, Virginia; Ocotlan, Mexico; and from the remaining capacity at the Lanaken site located in the Belgian province of Limburg, which will continue to operate with a nameplate capacity of approximately 26,000 tons per year.

As a result of the restructuring measures at the Lanaken facility, Celanese expects to record exit costs of approximately $35 million to $40 million with the majority of cash outflows occurring over the next six months. These expenses will be excluded from the company’s adjusted earnings per share and operating EBIT measures.

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