Celanese Corporation Issues Force Majeure for Western Hemisphere Acetic Acid and VAM
Celanese Corporation Issues Force Majeure for Western Hemisphere Acetic Acid and VAM

Celanese Corporation Issues Force Majeure for Western Hemisphere Acetic Acid and VAM

  • 13-Jun-2024 5:36 PM
  • Journalist: Sasha Fernandes

Celanese Corporation (NYSE: CE), a global leader in chemical and specialty materials, has officially announced a force majeure declaration and sales control for acetic acid and vinyl acetate monomer (VAM) sold in the Western Hemisphere. This decision follows escalating force majeure situations and operational disruptions faced by several suppliers of crucial raw materials vital to Celanese’s production of these chemicals. The company is evaluating production challenges stemming from these disruptions in raw material supply, alongside operational issues within its Acetyl Chain U.S. Gulf Coast network, and is implementing measures to mitigate production impacts.

The Acetyl Chain division prioritizes fulfilling customer requirements through the efficient utilization of its comprehensive network capabilities. Over time, substantial investments have been made to strategically enhance the flexibility of its integrated supply chain, and these capabilities will be leveraged to mitigate any potential disruptions for customers. During the sales control period, all non-contracted orders will undergo individual review based on specific circumstances.

Mark Murray, senior vice president of the Acetyl Chain, stated, "Currently, we expect our second-quarter production of acetic acid and VAM on the U.S. Gulf Coast to face a reduction of 15 to 20 percent due to ongoing operational hurdles. Our focus remains on ensuring uninterrupted supply for our customers by utilizing the flexibility that defines our business. In the second quarter, we anticipate additional costs related to production from higher-cost facilities, external sourcing, and logistics to mitigate customer impacts. Depending on the extent of production losses, there may also be a decrease in volume for the quarter."

Celanese acknowledges the potential impact on customers and remains committed to maintaining close communication to mitigate any disruptions caused by these challenges. Currently, Celanese is unable to disclose additional specifics or timing regarding the full extent of the impact on customers or its financial outlook. Further updates on the resolution of these temporary challenges and their financial implications will be provided during the second quarter earnings report.

Celanese is a leading global company in the field of chemistry, manufacturing vital specialty material solutions that are essential across a wide range of industries and consumer applications. Company businesses leverage expertise in chemistry, technology, and commercial operations to deliver value for customers, employees, and shareholders alike. Celanese are dedicated to sustainability, responsibly managing the lifecycle of company materials, and expanding range of sustainable products to align with growing customer and societal expectations. Celanese aims to create a positive impact in communities and promote inclusivity within its teams. As a Fortune 500 company, Celanese employs around 12,400 individuals globally and achieved net sales of $10.9 billion in 2023.

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