Celanese plans to close an Engineered Materials compounding site at Mechelen, Belgium that was part of its USD11 billion acquisition of DuPont’s Mobility & Materials business in 2022, said the company.
The closure would help optimize production costs across Celanese’s global network, it said in a financial filing.
Manufacturing operations at Mechelen are expected to permanently cease by the end of September 2024, subject to a consultation process with works council and union representatives that started this week.
The closure is expected to result in expenses of about USD60-75 million, consisting primarily of accelerated depreciation of fixed asset costs and facility-related shutdown cash costs.
Not included are employee termination costs, which will be subject to the works council consultation, Celanese said, adding that is currently unable to provide a reasonable estimate of these costs.
The business Celanese acquired from DuPont produces engineering thermoplastics and elastomers, for end-use in automotive, electrical and electronics, consumer goods and industrial applications.
We remind, Celanese will idle eight units in its Engineered Materials segment, while running many other plants at reduced rates. Celanese did not specify which units it will idle, what products they make or how long they will remain down. Out of the idled plants, six are in Mobility & Materials (M&M), a business that Celanese acquired from DuPont. The remaining two predated the M&M acquisition.
mrchub.com