Celanese Chemicals Declares Force Majeure on Acetyl Products for Asian Customers

09-Aug-2002

KRONBERG, Germany, Aug. 8 - Celanese Chemicals was notified on August 7th by its carbon monoxide ("CO") supplier, Singapore Syngas Pte.Ltd. ("SSPL"), that SSPL has declared force majeure on its supply of CO to Celanese's Singapore acetyl production complex. SSPL estimates that CO deliveries will resume at the end of August. As a result of this notification, Celanese Chemicals must declare force majeure on acetic acid and derivative products for its Asian customers.

Celanese believes that the outage could depress third quarter EBITDA excluding special charges in the mid-teen euro million range, assuming SSPL starts up as notified. However, by year-end Celanese expects that a substantial portion of this amount can be recovered, principally through a captive insurance program and contractual recourse. As a result, this outage should not appreciably affect the company's full year EBITDA excluding special charges outlook.

"Celanese regrets that it must declare force majeure. We are making every effort to reduce the supply interruptions to our Asian customers with products from other acetyl plant sites in the U.S. and Europe", said John O'Dwyer, Vice President and General Manager of Acetyls.

Celanese Chemicals consists of the Acetyl Products and Chemical Intermediates segments of Celanese AG.

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