Chemical and advanced materials maker, Celanese CE said that it has completed the sale of its atmospheric (vinyl and acrylics) emulsions unit in Tarragona, Spain to petrochemical company, IQOXE. Financial terms of the transaction were not divulged.
Tarragona-based IQOXE specializes in the production of ethylene oxide, glycols and ethylene oxide derivatives. The entity has purchased the operation of the atmospheric emulsions unit (nameplate production capacity of 25,000 MT) with 29 employees from Celanese. IQOXE will make certain emulsions products under a multi-year deal for which Celanese will remain the channel to market for Mowilith and Celvolit atmospheric emulsions.
Celanese has also closed its vinyl acetate-ethylene (VAE) emulsions production unit in Tarragona. Production at the facility ceased at the end of Oct 2015.
Celanese launched the sale process for both atmospheric and VAE units in March this year with a goal to find a credible buyer for both facilities. The sale plan was driven by a review of the company’s overall corporate strategy that included an assessment of its global manufacturing facilities.
Celanese had been actively looking for credible buyers that could ensure sustainable operations, retain employees and meet the financial criteria set by the company to ensure successful future operations for both units. However, it could not find a credible buyer for the VAE unit and hence decided to close the facility.
Celanese has conducted a consultation process with local employee representatives to lessen the social impact of the VAE unit closure on the affected employees. The company will continue to supply its VAE emulsions customers from its European emulsions production network.
Celanese is a Zacks Rank #1 (Strong Buy).
Other companies in the chemical industry worth considering include Innospec Inc. IOSP, Cytec Industries Inc. CYT and The Dow Chemical Company DOW. While Innospec holds a Zacks Rank #1 (Strong Buy), both Cytec and Dow retain a Zacks Rank #2 (Buy).
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