Celanese Sells Millhaven Polyester Unit to KoSa, Closes Staple Unit
KoSa and Celanese jointly agreed to phase out polyester staple production by March 2000, says Celanese spokesperson Andrea Stine. "Worldwide overcapacity in the polyester staple market necessitates the closure of these operations," says Millhaven site manager Brian Pitts. The move will effect about 240 workers. The PET line will continue to operate.
Celanese is part of $5.3 billion Germany's Celanese AG, which was spun off from Hoechst AG in October. The company has moved rapidly to reposition itself since then. On Oct. 29, it announced it would permanently close its 15,000 mt/yr cellulose acetate filament in Drummondville, Canada.
"Celanese is seeking to enhance shareholder value by divesting noncore assets, restructuring our current operations, and taking advantage of growth opportunities," says company chairman/CEO Claudio Sonder. "The sale of the Millhaven plant will allow us to focus our resources more intensively on our core chemicals, acetate products, and technical polymers businesses."
The sale further buttresses KoSa's position as a leading producer and marketer of polyester. In fact, KoSa currently has an exclusive agreement with Celanese to market all products produced at Millhaven and sold into the United States.
KoSa was formed in December 1998 when Koch Industries, Inc. (Wichita, KS) teamed with Mexico industrialist Isaac Saba's IMASAB, SA de CV, to purchase Hoechst AG's Trevira polyester business. The company's businesses include staple and filament textile fibers, technical filament, tire cord, packaging resins, and intermediates and polymers.
Edited by Alan S. Brown