Celanese's Low-Cost and Specialty Materials Positioned for Recovery and Long-Term Demand Growth

Celanese is the world's largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomer and emulsions. These products are used to produce specialty engineered materials or sold externally. Celanese produces these commodity chemicals in its acetyl chain segment, which generates a little less than half of companywide profits. This segment primarily serves the automotive, cigarette, coatings, building and construction, and medical end markets. Celanese's Clear Lake, Texas, plant benefits from a cost-advantaged feedstock from low-cost US natural gas. The company has expanded its acetic acid production capacity at Clear Lake in recent years to take advantage of the low-cost US natural gas-based feedstock, while also reducing capacity in other higher-cost regions. This should support segment margins as we expect prices to remain well below natural gas prices in Europe, Asia, and Brent oil-based feedstock.