Celanese Corporation CE announced that it has concluded the conversion of its Narrows, VA, operation to natural gas-fired boilers. The company invested $150 million in order to replace its coal-fired boilers with natural gas to generate the steam required to run the plant’s electrical generators and processes. The plant is among the biggest global producers of cellulose acetate tow, a natural and environmentally friendly product that is used for filtration applications.
This step reflects Celanese’s strategy of being sustainable and its endeavors to create a cleaner environment for the communities where it operates. Also, the decision to convert its plant along with the application of ENERGY STAR energy management resources will enable the company to improve its energy management system.
The company’s investment in the Narrows, VA plant has benefited the residents of the State of Virginia by creating employment opportunities. The boiler equipment conversion project provided more than 300 jobs in Giles County during the construction phase besides supporting over 1,000 existing jobs.
Celanese remains focused on reducing costs and running its plants more efficiently amid operating uncertainty. It is aggressively expanding its capacity in the emerging Asian markets. The company’s expansion initiatives in China are expected to support earnings growth.
Celanese’s strong presence in emerging markets will enable it to deliver incremental earnings in 2015. Earnings are expected to be driven by company-specific initiatives, including product innovation and enhancement of efficiencies through productivity. The company expects its business strength to offset the volatility in the macro environment in 2015.
Celanese currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the diversified chemical space include Innospec Inc. IOSP, Stepan Company SCL and Akzo Nobel NV AKZOY. While Innospec and Stepan Company sport a Zacks Rank #1 (Strong Buy), Akzo Nobel carries a Zacks Rank #2 (Buy).
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