Celanese to Restructure Business, Close Several Production Facilities

Celanese AG recently announced major steps to restructure its acetate products businesses and Mexican acetyl chemicals operations, as part of its strategy to maximize its global manufacturing efficiency.

The restructuring will involve the consolidation of the company's acetate filament operations at the Narrows, Va., Ocotlan, Mexico, and Lanaken, Belgium sites and the phasing out of acetate filament production at the Rock Hill, S.C., site. In Mexico, Celanese will shut its Celaya acetyl chemicals plant and reduce acetate filter tow production.

• The Rock Hill, S.C., acetate filament facility will be phased out by the end of the third quarter of 2001. About 445 employees will be affected. The site will continue to produce acetate flake, which is used as a raw material for acetate filament and acetate tow production.
  
• Current Rock Hill production will be shifted to the company's other acetate filament plants, and acetate filament capacity at Ocotlan will be expanded.
  
• As part of the consolidation of acetate product assets, the company will close Ocotlan's acetate flake production by the third quarter of 2000.
  
• In addition, the filter products business will permanently reduce annual acetate tow capacity by 10,000 tons at Ocotlan by the third quarter of 2000. This will bring Celanese filter tow capacity more in line with projected sales. The production lines will be reallocated to other products.
  
• In the acetyl chemicals area, Celanese will shut down its acetic acid, acetic anhydride, acetone derivatives and acetate esters plants at Celaya, Mexico, by December 2000. The closing will affect 300 employees. As part of this plan, in 2000, Celanese will increase acetate esters production at its other facilities and start acetone derivatives production in Cangrejera, Mexico to offset the Celaya closing.

Celanese AG is a global industrial chemicals company.

For more information: Hans-Bernd Heier, Celanese AG. Tel: 011-49-69-305-7112, or Fax, 011-49-69-305-84160.