VAM and acetic anhydride expansions at Nanjing site to support demand growth; VAE expansions at Frankfurt and Nanjing sites; and RDP expansions in Europe all point to growing vinyls program
DALLAS, FRANKFURT and SHANGHAI (March 24, 2021) – Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today announces further investments to strengthen its commitment to being the world’s foremost emulsion polymers and vinyl acetate producer through facility expansions, new unit builds and key debottlenecking projects in Europe and Asia. Today’s announced expansion plans, highlighted below, point to a growing and robust vinyls portfolio for the company’s Acetyl Chain and derivatives.
Nanjing, China Expansions: VAM and Acetic Anhydride
Solidifying its global vinyl acetate monomer (VAM) capabilities, Celanese is initiating a capital-efficient expansion of its VAM production unit at the company’s world-class chemical industrial park in Nanjing, China. This expansion will support the continued growth of its global acetyls business and serve the needs of customers in the Asia region and globally.
Celanese is expected to initially increase the annual VAM production capacity at its Nanjing facility by 50KT to 60KT, with a phased approach of up to 90KT total of additional annual production capacity expected. The expanded VAM production capacity at the Nanjing facility is made possible via a novel, next-generation proprietary Celanese catalyst and advanced technology package that, when complete, is expected to increase the annual VAM nameplate capacity at the Nanjing facility from approximately 300KT to nearly 400KT.
Celanese is also planning for a capital efficient 10KT per year expansion of acetic anhydride production at its Nanjing facility, bringing the anhydride nameplate capacity at the site to approximately 130KT by 2022, allowing Celanese to support demand growth.
“Celanese is the global leader by volume in the production of vinyl acetate monomer. Based on our capital cost and the efficiency of production, we believe we have the most advanced manufacturing and technical capabilities of any producer,” said Florian Kohl, Vice President of Celanese’s Global Vinyl Chain businesses. “Celanese is best positioned for growth in the VAM market due to the company’s modern asset base as well as its flexible, cost-advantaged expansion options, combined with the ultra-low capital required of a project of this size and scope.”
Frankfurt, Germany and Nanjing, China Expansions: Vinyl Acetate Ethylene Emulsions
Celanese is also announcing today that it plans to continue its VAE growth at the company’s Nanjing and Frankfurt facilities through the construction of two new VAE reactors, with an increase of approximately 65KT of annual capacity at the Nanjing site by 2023, and an increase of approximately 45KT of annual capacity at the Frankfurt site, also by 2023.
Today’s announcement builds upon the company’s global vinyls expansion program, initiated in January 2020 to expand the emulsion polymers business in the Europe and Asia regions, which will extend the value of its global Acetyls business. Celanese is pleased to report that it is progressing well with these previously announced investment projects (in Frankfurt, Germany and Nanjing, China), which will further strengthen the company’s emulsion polymers and VAE leadership positions.
European Site Debottlenecking: Redispersible Polymer Powders (RDP)
With the April 2020 acquisition of the Elotex business, Celanese further strengthened its derivative expansion program by adding a global redispersible polymer powders product line to help drive growth of VAE emulsions.
Celanese today is also announcing plans to expand its redispersible polymer powders growth through debottlenecking efforts currently underway at the company’s European powders facilities, resulting in an increase of approximate 20KT of annual capacity by 2023.
“As a world leader in the acetyls and derivatives space, Celanese has an exceptional, globally integrated production, distribution and sales network to maximize the Acetyl chain’s downstream optionality and capture growth in key regions and end uses,” concluded Kohl. “Building on a commitment to our global customers, Celanese is making key investments in VAM, VAE and RDP facility expansions, as well as expanding on our ‘green technology’ product development, to deliver on their global growth demands.”
Each of these planned expansions are subject to regulatory approvals in their respective countries of operation, and financial details of each project are not being disclosed at this time.