Celanese Completes Series of Strategic Actions Across its Global Acetyl Chain

Tue, April 9 2024

DALLAS & SHANGHAI--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, today announced several strategic milestones at its Clear Lake, Texas, and Nanjing, China, plants to enhance the competitive cost position, sustainable footprint and operational flexibility of the Acetyl Chain (AC) business and allow it to meet future demand growth. These include:

• The startup of a new 1.3 million ton Clear Lake acetic acid expansion in March 2024, which we believe to be the lowest-cost and lowest-carbon footprint acetic acid facility in the world.¹ This milestone builds upon the recently announced and ISCC-certified carbon capture and utilization (CCU) project that increased the capacity of the Fairway Methanol joint venture with Mitsui & Co., Ltd. by 130 kt while capturing 180 kt of CO2 industrial emissions. The low-carbon methanol can provide customers with low-carbon ECO-CC AC and Engineered Materials downstream products for a wide range of consumer applications.

• The startup of a new vinyl acetate ethylene (VAE) unit in Nanjing and completion of global, low-capital downstream redispersible polymer powders (RDP) debottlenecking projects. This new VAE unit increases capacity by 70 kt and expands the Acetyl Chain’s ability to leverage the full breadth of its integrated product chain in the Asia region and address growing regional demand for both VAE and downstream RDP.

• The Celanese subsidiary, Celanese (Nanjing) Chemical Co. Ltd., has extended its CO Phase II contract with Nanjing Chengzhi Clean Energy Co., Ltd. for the supply of carbon monoxide to its facility in Nanjing. Carbon monoxide is a key feedstock in the production of acetic acid. The extended contract will provide the Celanese Nanjing facility with reliable long-term supply of carbon monoxide for its 1,200 kt acetic acid plant as well as additional operating flexibility

“Our teams in Clear Lake and Nanjing did an incredible job of working both across our business and with valued partners like Chengzhi to deliver on key operational investments that improve our optionality and position us to increase foundational earnings through expected adjusted EBIT by $100 million to $1.4 billion as we previously reported,” said Mark Murray, senior vice president, Acetyls, Celanese. “These moves not only advance our ability to meet customer requirements with a flexible, low-cost approach, but also makes us well-positioned for future global and regional growth.”

With global manufacturing and distribution capabilities, Celanese is a leading producer of acetic acid, which is a basic chemical used in paints and coatings, adhesives, plastic bottles, food packaging and construction materials.

About Celanese
Celanese is a global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for our customers, employees and shareholders. We are committed to sustainability by responsibly managing the materials we create for their entire lifecycle and are growing our portfolio of sustainable products to meet increasing customer and societal demand. We strive to make a positive impact in our communities and to foster inclusivity across our teams. Celanese is a Fortune 500 company that employs approximately 12,400 employees worldwide with 2023 net sales of $10.9 billion.

Forward-Looking Statements: This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company or its customers will realize these benefits or that these expectations will prove correct. There are a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from the forward-looking statements contained in this release. Risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Non-GAAP Financial Measures

Use of Non-US GAAP Financial Information

This release uses adjusted EBIT, a Non-US GAAP measure. This measure is not recognized in accordance with US GAAP and should not be viewed as an alternative to US GAAP measures of performance or liquidity. The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT is net earnings (loss) attributable to Celanese Corporation.

Reconciliations of forecasted non-GAAP measures such as adjusted EBIT to the equivalent U.S. GAAP measures (net earnings (loss) attributable to Celanese Corporation), are not available without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, and other items is not practical.

Definitions of Non-US GAAP Financial Measures

• Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.

Reconciliation of Non-US GAAP Financial Measures

For more information on the historical non-GAAP financial measures used by the Company, including the most directly comparable GAAP financial measure for each historical non-GAAP financial measures used, including definitions and reconciliations of the differences between such non-GAAP financial measures and the comparable GAAP financial measures, please refer to the Non-US GAAP Financial Measures and Supplemental Information document available on our website, investors.celanese.com, under Financial Information/Non-GAAP Financial Measures.

¹ Based on internal estimates.

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Investor Relations
Brandon Ayache
+1 972 443 8509
brandon.ayache@celanese.com

Media Relations – Global
Brian Bianco
+1 972 443 4400
media@celanese.com

Source: Celanese Corporation