Celanese AG Tuesday announced that it has received Chinese government approval to build a world-scale acetic acid plant in the Jiangsu province.
The plant will be located at the Nanjing Chemical Industry Park, Nanjing City, in eastern China.
The facility will have an annual capacity of 600,000 metric tons. Project activities will begin immediately, with production expected to begin in late 2005/early 2006. The investment amount for the project is not disclosed. Celanese reaffirmed its guidance for 2003 total capital expenditure of approximately (EUR) 230 million. Celanese capital expenditures in the acetyl segment over the next three years will approximate depreciation.
"The decision to build a facility in Nanjing City demonstrates our expectations for the Chinese market and our commitment to our core businesses and Asia as a whole," said Claudio Sonder, Celanese CEO. "Growth prospects in China are excellent, and we can deploy our state-of-the-art process technology to meet the growing need for acetic acid and derivatives."
In China, Celanese has long-standing joint ventures in cellulose acetate tow. In addition, groundbreaking for a new polyacetal engineering plastics joint venture site is expected to take place in mid-2003 in Nantong, China.
"We view the Celanese acetic unit as one of the most important projects in the park, as acetic acid is one of the three anchor products upon which we will be basing our chemical industry development in the area," said Mr. Lu Yi, General Manager of the Nanjing Chemical Industry Park.
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 holds a worldwide leading position in acetic acid with production capacities of over 2 million tons per-annum.
Celanese AG is a global chemicals company with leading positions in its key products and world class process technology. The Celanese portfolio consists of five main businesses: Acetyl Products, Chemical Intermediates, Acetate Products, Technical Polymers Ticona and Performance Products.
Celanese generated sales of around (EUR) 4.3 billion in 2002 and has 10,700 employees. The company has 25 production plants and six research centers in 11 countries mainly in North America, Europe and Asia. Celanese AG shares are listed on the Frankfurt Stock Exchange (stock exchange symbol CZZ) and on the New York Stock Exchange (symbol CZ).
For further information please visit our website (www.celanese.com)
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.