Celanese Sets One of the World’s Largest Production Bases in Nanjing City

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Researched by Industrial Info Resources (Sugar Land, Texas)--Celanese announced September 19, 2007, that it has one of the world's largest integrated production bases in China's Nanjing City. Two of the six projects planned in Nanjing will be completed this year. The others are planned for next year.

The main products of Celanese Corporation's (NYSE:CE) (Dallas, Texas) Nanjing base includes acetic acid, vinyl acetate, acetic anhydride, vinyl acetate-ethylene copolymer emulsion, engineering plastics, polyethylene and more.

Acetic acid operations began in June, and the emulsion factory will start to run before year’s end. Four other factories are expected to run in 2008.

The equipment used for acetic acid use coal instead of natural gas as raw material, allowing Celanese to cut its cost by one-fourth. Compared with equipment in the U.S. and Singapore, the equipment saves up to 40% of the cost.

Celanese has also planned to double the capacity of its acetic acid equipment, currently China's biggest, from 600,000 tons per annum to 1.2 million tons per annum.

Celanese's total sales on the projects will reach $500 million in 2009, and 45% to 55% of Celanese's global sales (expected to be $8 billion) will come from Asia in 2010.

Celanese entered China in 1983. It moved its intermediate department to Shanghai this March and formed its China investment company to enhance Celanese's performance in Asia, especially in China.

Celanese is willing to buy out more Chinese companies to expand its business and get accustomed to the Chinese market, David Weidman, Chairman and CEO of Celanese, said in an interview with Chinese media this month about the Nanjing base.

Besides the Nanjing base, Celanese has set up acetic acid fibers factories in Nantong City (Jiangsu Province) with the Tobacco Monopoly Administration of Jiangsu Province in Kunming City (Yunnan Province) and Zhuhai City (Guangdong Province), along with the State Tobacco Monopoly Administration of China and in Bazhou City (Hebei Province) with a Bazhou subsidiary of Tianjin Shield Company (Tianjin City).

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