CELANESE CORPORATION

CELANESE CORPORATION

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Company Overview
Celanese Corporation is engaged in the production of chemicals, fibers, pharmaceuticals and plastics, such as the thermoplastic cellulose acetate used to produce cigarette filters. The company is formerly known as American Cellulose and Chemical Manufacturing Company. It was founded in 1918 by the Swiss chemist Dr. Camille E. Dreyfus and his brother Dr. Henri Dreyfus. It is registered as a publicly quoted company, with shares listed on New York Stock Exchange. The registered business office of the company is located in Dallas, Texas, United States of America.
The company has four business segments, namely chemical products, technical polymers ticona, acetate products, and performance products.
Chemical products segment produces and supplies acetyl products.
The company’s technical polymers ticona segment develops, produces and supplies a portfolio of high performance technical polymers.
Acetate products segment produces and supplies acetate tow and acetate flake.
The company’s performance products segment produces and sells high intensity sweetener and food protection ingredients under the trade name of Nutrinova.
Celanese Corporation is considered as the leading global producer of acetyl products, including acetic acid and vinyl acetate monomer (“VAM”), polyacetal products (“POM”), as well as a leading global producer of high-performance engineered polymers used in consumer and industrial products and designed to meet highly technical customer requirements. It aims to become the premier chemical company.
The company has strategic alliances with Accsys Technologies for innovative use of acetyl products, and Hebei Shield Technology Co. Ltd.
Celanese Corporation is active and has operations, through its subsidiaries, in the United States, France, Canada, Germany, Singapore, Bermuda, Mexico, and the United Kingdom. The company has the largest plant in Pasadena, Texas is home to the world’s largest acid production unit.
Business Summary
Celanese Corporation (Celanese) is an integrated producer of chemicals and advanced materials. The Company is a producer of acetyl products, which are intermediate chemicals for nearly all industries, as well as a producer of engineered polymers that are used in a variety of end-use applications. Its operations are primarily located in North America, Europe and Asia. Celanese operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties and Acetyl Intermediates. Its subsidiaries include Celanese US Holdings LLC and Celanese Europe Holding GmbH & Co. KG.
Description and history
Celanese Corporation (Celanese), incorporated in 2005, is an integrated producer of chemicals and advanced materials. The Company is a producer of acetyl products, which are intermediate chemicals for nearly all industries, as well as a producer of engineered polymers that are used in a variety of end-use applications. Its operations are primarily located in North America, Europe and Asia. Celanese operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties and Acetyl Intermediates. Its subsidiaries include Celanese US Holdings LLC and Celanese Europe Holding GmbH & Co. KG.

Advanced Engineered Materials

The Company’s advanced engineered materials segment develops, produces and supplies a portfolio of technical polymers for application in automotive and electronics products, as well as other consumer and industrial applications. The primary products of advanced engineered materials are POM, PPS, LFRT, PBT, PET, GUR and LCP. POM, PPS, LFRT, PBT and PET are used in a range of products, including automotive components, electronics, appliances and industrial applications. GUR is used in battery separators, conveyor belts, filtration equipment, coatings and medical devices. Primary end markets for LCP are electrical and electronics.

Advanced Engineered Materials’ technical polymers have chemical and physical properties enabling them, among other things, to withstand extreme temperatures, resist chemical reactions with solvents and withstand fracturing or stretching. These products are used in a range of performance-demanding applications in the automotive and electronics sectors, as well as in other consumer and industrial goods. Its customer base consists primarily of a number of plastic molders and component suppliers, which typically supply original equipment manufacturers (OEM). POM is sold under the trademark Hostaform in all regions but North America, where it is sold under the trademark Celcon. It is used for mechanical parts, including door locks and seat belt mechanisms, in automotive applications and in electrical, consumer and medical applications, such as drug delivery systems and gears for appliances.

GUR is an engineered material used in automotive and industrial applications, such as car battery separator panels and industrial conveyor belts, as well as in specialty medical and consumer applications, such as sports equipment and prostheses. GUR micro powder grades are used for filters, membranes, diagnostic devices, coatings and additives for thermoplastics and elastomers. GUR fibers are also used in protective ballistic applications.

Celstran and Compel are long fiber reinforced thermoplastics used in automotive, transportation and industrial applications. Polyesters, such as Celanex PBT, Celanex PET, Vandar, a series of PBT polyester blends and Riteflex, a thermoplastic polyester elastomer, are used in a variety of automotive, electrical and consumer applications, including ignition system parts, radiator grilles, electrical switches, appliance and sensor housings, light emitting diodes (LED) and technical fibers.

Liquid crystal polymers, such as Vectra are used in electrical and electronics applications and for precision parts. Fortron, a PPS product, is used in a variety of automotive and other applications, especially those requiring heat and/or chemical resistance, including fuel system parts, radiator pipes and halogen lamp housings, often replacing metal. Other possible application fields include non-woven filtration devices, such as coal fired power plants.

The Company competes with BASF AG (BASF), E. I. DuPont de Nemours and Company (DuPont), DSM N.V., Sabic Innovative Plastics, Solvay S.A., Asahi Kasei Corporation, Mitsubishi Gas Chemicals, Inc., Chevron Phillips Chemical Company, L.P., Braskem S.A., Lanxess AG, Teijin, Sumitomo, Inc. and Toray Industries Inc.

Consumer Specialties

The consumer specialties segment consists of the acetate products and Nutrinova businesses. Celanese’s acetate products business primarily produces and supplies acetate tow, which is used in the production of filter products. It also produces acetate flake, which is processed into acetate fiber in the form of a tow band. The Company’s Nutrinova business produces and sells Sunett, a sweetener, and food protection ingredients, such as sorbates, for the food, beverage and pharmaceutical industries.

Acetate tow is used primarily in cigarette filters. Celanese produces acetate flake by processing wood pulp with acetic anhydride. The acetate flake is then further processed into acetate fiber in the form of a tow band. Acesulfame potassium, a high intensity sweetener marketed under the trademark Sunett is used in a variety of beverages, confections and dairy products.

Nutrinova’s food ingredients business consists of the production and sale of food protection ingredients, such as sorbic acid and sorbates, and sweeteners. Nutrinova’s food protection ingredients are mainly used in foods, beverages and personal care products. The primary raw materials for these products are ketene and crotonaldehyde.

The Company competes with Daicel Chemical Industries Ltd. (Daicel), Eastman Chemical Corporation (Eastman), Rhodia S.A., Holland Sweetener Company, The NutraSweet Company, Ajinomoto Co., Inc., Tate & Lyle PLC, Nantong AA, Daicel, Yu Yao/Ningbo and Yancheng AmeriPac.

Industrial Specialties

The Company’s industrial specialties segment includes Emulsions, polyvinyl alcohol (PVOH) and ethylene vinyl acetate (EVA) Performance Polymers businesses. Its emulsions business produces a broad product portfolio, specializing in vinyl acetate ethylene emulsions. The PVOH business produced a broad portfolio of performance PVOH chemicals engineered to meet specific customer requirements. On July 1, 2009, the PVOH business was sold. Its emulsions products are used in an array of applications, including paints and coatings, adhesives, building and construction, glass fiber, textiles and paper. EVA Performance Polymers offers a line of low-density polyethylene and specialty ethylene vinyl acetate resins and compounds. EVA Performance Polymers’ products are used in many applications, including flexible packaging films, lamination film products, hot melt adhesives, medical tubing and devices, automotive carpet and solar cell encapsulation films.

The products in the emulsions business include conventional vinyl and acrylate based emulsions and high-pressure vinyl acetate ethylene emulsions. Emulsions are made from vinyl acetate monomer (VAM), acrylate esters and styrene. These products are a key component of water-based architectural coatings, adhesives, non-wovens, textiles, glass fiber and other applications. PVOH is used in adhesives, building products, paper coatings, films and textiles. EVA Performance Polymers produces low-density polyethylene and EVA resins and compounds that are used in the manufacture of hot melt adhesives, automotive carpet, lamination film products, flexible packaging films, medical tubing and solar cell encapsulation films. EVA resins and compounds are produced in high-pressure reactors from ethylene and VAM.

The Company competes with The Dow Chemical Company (Dow), BASF, Dairen, Wacker, DuPont, ExxonMobil Chemical and Arkema.

Acetyl Intermediates

The Company’s acetyl intermediates segment produces and supplies acetyl products, including acetic acid, VAM, acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings, and medicines. Other chemicals produced in this business segment are organic solvents and intermediates for pharmaceutical, agricultural and chemical products.

Acetyl products include acetic acid, VAM, acetic anhydride and acetaldehyde. Acetic acid is primarily used to manufacture VAM, PTA and other acetyl derivatives. VAM is used in a variety of adhesives, paints, films, coatings and textiles. Acetic anhydride is a raw material used in the production of cellulose acetate, detergents and pharmaceuticals. Acetaldehyde is a feedstock for the production of a variety of derivatives, such as pyridines, which are used in agricultural products. Celanese manufactures acetic acid, VAM and acetic anhydride for its own use, as well as for sale to third parties.

Solvents and derivatives products include a variety of solvents, formaldehyde and other chemicals, which in turn are used in the manufacture of paints, coatings, adhesives and other products. The primary products are Ethyl acetate and Butyl acetate. Formaldehyde and formaldehyde derivative products are derivatives of methanol and are made up the products, which include Formaldehyde, paraformaldehyde and formcels; amines, such as methyl amines, monisopropynol amines and butyl amines, and special solvents, such as crotonaldehyde.

The Company competes with Atofina S.A., BASF, British Petroleum PLC, Chang Chun Petrochemical Co., Ltd., Daicel, Dow, Eastman, DuPont, LyondellBasell Industries, Nippon Gohsei, Perstorp Inc., Jiangsu Sopo Corporation (Group) Ltd., Showa Denko K.K., and Kuraray Co. Ltd.

Formerly known as American Cellulose and Chemical Manufacturing Company; Founded by the Swiss chemist Dr. Camille E. Dreyfus and his brother Dr. Henri Dreyfus

Business Line
Engaged in the production of chemicals, fibers, pharmaceuticals and plastics, such as the thermoplastic cellulose acetate used to produce cigarette filters
Subsidiary
1776461 CANADA INC
Advisor
KPMG LLP
IPO date
1/2005
US SIC Code
2899
Company Address
1601, West LBJ Freeway

City province or state postal code
75234, DALLAS, TX
Phone: +1 972 901 4500
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.celanese.com