Celanese Acetate to Consolidate Manufacturing and Exit Filament Business

27-Oct-2004

Celanese Acetate LLC announced plans to consolidate its acetate flake and tow manufacturing and to exit the acetate filament business.

"We are implementing this strategic plan to become more efficient, reduce overcapacities in certain manufacturing areas, and focus on products and markets that provide long-term value," said Doug Madden, president, Celanese Acetate.

Acetate flake and tow manufacturing will be consolidated into three locations: Narrows, Va.; Ocotlán, Mexico; and Lanaken, Belgium. During 2005, acetate flake production at the Rock Hill, S.C. facility will be phased out, and a flake production unit at Ocotlán will be re-commissioned.

The Edmonton, Canada acetate tow production unit will discontinue operations in mid-year 2005, while flake production at Edmonton will be phased out in late 2006 or early 2007.

The decision to exit the acetate filament business stems from a deterioration of overall business conditions related to the substitution of non-acetate fibers into traditional market applications. Acetate filament operations at Narrows and Ocotlán will be discontinued by mid-year 2005.

"Celanese has been a pioneer in the acetate filament industry since the 1920s," said Madden. "Unfortunately, the long-term market outlook and the related economic conditions no longer allow us to allocate resources to this product line. We will remain committed to ensuring a smooth transition of supply for our filament customers."

When the restructuring is complete, it is anticipated that approximately 900 to 1,100 positions will be impacted. This represents about 10% of the Celanese Group worldwide. Approximately 700 of the impacted positions are related to the exit of the filament business.

https://www.chemeurope.com/en/news/40510/celanese-acetate-to-consolidate-manufacturing-and-exit-filament-business.html