Industry News

Celanese Signs Key Raw Material Contract for Nanjing Site

Published on 2005-02-07. Author : SpecialChem

SHANGHAI -- Celanese Corporation (NYSE: CE) announced the signing of a long-term contract for the supply of carbon monoxide (CO) to its 600,000 metric ton acetic acid plant now under construction in the Nanjing Chemical Industry Park, Nanjing City, in eastern China (Jiangsu Province). CO is a key raw material in the production of acetic acid. Details of the contract were not disclosed.

The supplier, WISON (Nanjing) Chemical Company, Ltd., will build its plant in the Nanjing Chemical Industry Park to produce CO and methanol using a clean-burning coal gasification process. WISON will sell the methanol into the merchant market. The CO/methanol facility is slated to be ready for production in late 2006 or early 2007 and will be managed by a team of experienced operators that have been recruited by WISON.

"This agreement will allow us to diversify our raw material sourcing globally and work with a supplier who has been involved in many successful projects in China,"said George McGinn, President, Celanese China. “At the same time, it gives Celanese a CO supply source that is based on readily-available coal processed by state-of-the-art environment-friendly technologies.“

As previously announced, Celanese has completed the substantial portion of its engineering work for the facility, ordered the reactor and other long lead-time equipment, signed a terminal and logistical services contract, and secured a natural gas-based CO source. The facility project is funded by equity and bank financing secured from the Bank of China.

Acetic acid is a basic chemical that becomes part of paints, adhesives, plastic bottles, foods, construction materials and hundreds of other products that will play a role in the an expanding Chinese economy. Celanese is a world leader in acetic acid production.

Nanjing City, in the commercial heart of China, is situated on the lower Yangtze River and offers superior logistics provided by a vast network of rail, road and waterways. The Nanjing Chemical Industry Park is one of the two State-level petrochemical parks in China.

Celanese Corporation (NYSE:CE) is an integrated global producer of value-added industrial chemicals with 2003 sales of $4.6 billion. Based in Dallas, Texas, the company holds #1 or #2 market positions in products comprising the majority of its sales and has four major businesses: Chemicals Products, Technical Polymers Ticona, Acetate Products and Performance Products. Celanese has 24 production plants, with major operations in North America, Europe and Asia.

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission, copies of which are available from the Company.

Source: Celanese Corporation

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