Celanese to Declare Force Majeure for Nanjing, China Facility Due to Curtailed Production; Partially Lifts Western Hemisphere Force Majeure

Celanese Corporation, a global chemical and specialty materials company, today confirmed a declaration of force majeure in China for the following Acetyl Chain products manufactured at its Nanjing, China facility:

  • Acetic Anhydride
  • Vinyl Acetate Monomer (VAM)
  • Vinyl Acetate Emulsions
  • Redispersible Powders

The Company has temporarily shut down acetic anhydride and VAM production in Nanjing to comply with recent requirements of government departments in order to achieve dual energy consumption targets in the Jiangsu Province in 2021. Similar requirements for reduced energy consumption are being applied broadly on energy-intensive industries across multiple provinces. As a result of the shutdown of VAM production, a declaration of force majeure was also necessary for downstream vinyl acetate emulsions and redispersible powders.

Celanese continues to operate its acetic acid production unit in Nanjing.

Lifting of Western Hemisphere Force Majeure for Certain Acetyl Chain Products

Celanese is pleased to announce that it has lifted force majeure for the following products in the Western Hemisphere:

  • Acetic Acid
  • Ethyl Acetate
  • Acetic Anhydride
  • Methyl Acetate
  • Dimethylamine (DMA) and Trimethylamine (TMA)
  • Methyl Isobutyl Carbinol (MIBC) and Methyl Isobutyl Ketone (MIBK)
  • Paraformaldehyde

Celanese declared force majeure on February 18 due to the impacts of extreme winter weather on its operations and supply chain in the U.S. Gulf Coast.

At this time, the force majeure declaration remains in place for the following products:

  • Vinyl Acetate Monomer
  • Vinyl and Acrylic Emulsions
  • Redispersible Powders
  • Ethylene Vinyl Acetate

These products remain on force majeure as a result of ongoing interruptions to the availability of raw materials and global logistics.

“In all three of our businesses, we continue to see significant disruptions and volatility across regions,” said Lori Ryerkerk, chairman and chief executive officer. “We do not expect any material impact to our third quarter performance from either of these regional updates for the Acetyl Chain. “Recently curtailed acetyls production in China will further lift already tightened global utilization rates and likely result in elevated pricing conditions that will now extend further into 2022.”

The Company will provide another update on the status of Nanjing production and regional Acetyl Chain dynamics in October when it announces its third quarter 2021 financial results.

Source: Celanese



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