(Reuters) -- Celanese Corp (CE.N) expects weakness in Europe and much of Asia to linger longer than initially anticipated this year, news that sent the chemical maker's stock down more than 3 %.
The company, which reported lower-than-expected quarterly profit on Tuesday, is the world's largest producer of acetyl intermediate chemicals, which are used to make paints and glues. Celanese also is a large producer of acetate tow, used to make cigarette filters.
"We expect the current challenging market conditions in Europe and Asia outside of China to continue further into 2012 than originally anticipated," Chief Executive Mark Rohr said in a press release.Celanese shut an acetic acid plant in Singapore during the first quarter because of tough market conditions in Asia, the top executive for the US-based acetyls producer said on Tuesday.
New Celanese chief Mark Rohr said the 600,000 tonne/year acetic acid plant was taken down at the end of the quarter because of declining margins and demand there.
MRC
(Reuters) -- Fears that a shortage of a nylon resin used in auto manufacturing will cut deeply into production worldwide are easing some, but there is still a danger that output may be curtailed, according to an industry executive.
The shortage stems from a March 31 blast at a German chemical plant owned by Evonik Industries AG. The explosion killed two workers and shut production of a key material used to produce PA-12. Evonik is a leading producer of both P-12 and the material used to produce it, called cyclododecatriene, or CDT.
Two auto suppliers, Eaton Corp and Delphi Automotive , on earnings calls this week said the shortage of PA-12 has not hit their production and company executives were optimistic that auto output will not be greatly affected.World supplies of nylon 12, constrained by a plant explosion, may last for four to six weeks, a US-based automobile group said.
In response to the potential shortage in PA 12 supply, AIAG facilitated a critical multi-stakeholder workshop
to fast-track the approval process for replacement materials for use in multi-layer tubing assemblies, metal
tubing and other automotive applications.
MRC