Celanese cuts Belgium acetate tow plant by 50%

Celanese will proceed with permanently reducing capacity by 50% at its acetate tow production facility in Lanaken, Belgium, as previously proposed, the specialty chemicals company announced on Tuesday.

This decision results from continuing declines in the global demand for acetate tow products, especially in Europe, according to company officials.

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% capacity reduction at the Lanaken facility," said Scott Sutton, president of the materials solutions business at Celanese. "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."

Celanese says it 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 tpy.

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.