Celanese: Optimization of compounding business in Asia

U.S. chemicals group Celanese plans to optimize production in Asia for its Engineered Materials (EM) division as part of its “Grow & Fortify” strategy.

In a press release issued at the beginning of the month, the company announced the immediate closure of its compounding plant in Ulsan, South Korea. The corresponding production is to be transferred to the sites in Nanjing and Shenzhen in China as well as Silvassa in India. Existing customer commitments will remain unaffected by the plant closure.

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With this step, Celanese is aiming for a more favorable cost structure and more efficient supply chains through production closer to customers in the region. At the same time, the company intends to make better use of capacity at its modern compounding facilities in China and India. No information was provided in the announcement on the financial impact of the site consolidation.

At the beginning of May, Celanese had also announced the closure of the polyamide plant belonging to the EM division at the Sakra site in Singapore by the end of July this year. In addition, the group plans to optimize capacities for the production of polyamide 6.6 at its U.S. sites in Richmond, Virginia, and Washington, West Virginia, which is expected to result in a “reduction in overall polymer production.”

Todd Elliott, head of Celanese’s EM division, stated: “Our business strategy includes a series of targeted, growth-oriented actions across our entire current product portfolio, with the aim of optimizing supply chains, improving performance and increasing operational flexibility.”

Listed Celanese, headquartered in Dallas, Texas, reported an operating loss of USD 786 million and a net loss of USD 1.165 billion on revenues of USD 9.544 billion in the 2025 financial year.

More information: www.celanese.com

Celanese Corporation, Dallas, Texas, USA