Celanese to close engineered materials site in Belgium

HOUSTON (ICIS)–Celanese plans to close an Engineered Materials compounding site at Mechelen, Belgium that was part of its $11 billion acquisition of DuPont’s Mobility & Materials business in 2022.

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 $60-75 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.

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