NYSE: CE (Series A)|
Russell 1000 Component
|Genre||Chemicals and advanced materials|
|Founded||New York City, New York, United States (1918 )|
|Mark C. Rohr, chairman and chief executive officer|
|Revenue||$5.4 billion (2016)|
Number of employees
Celanese Corporation, also known as Hoechst Celanese, is a Fortune 500 global technology and specialty materials company with its headquarters in Irving, Texas, United States. The company is a leading producer of acetyl products, which are intermediate chemicals for nearly all major industries, and is the world's largest producer of vinyl acetate monomer (VAM).
Celanese's operations are primarily located in North America, Europe, and Asia. Its largest plant is in the Clear Lake area of Pasadena, Texas, United States the home to the world's largest acetic acid plant. In 2016, Celanese reported net sales of $5.4 billion.
The American Cellulose and Chemical Manufacturing Co. Ltd plant in Cumberland, Maryland was set up during World War I to produce cheaper fabric for airplane manufacturing. The plant location was chosen inland to protect against Zeppelin attacks. It was also situated in proximity to a ready source of water at the Potomac River and easy access to coal supplies and railroad lines. After a series of delays, actual production began in 1924 with a series of cellulose acetate commercial fabrics and yarns intended as alternatives to silk. The plant was closed in 1983, and was later torn down to provide a space for a new state prison.
In 1927, the American Cellulose & Chemical Manufacturing Company changed its name to Celanese Corporation of America. In 1986, its pharmaceutical business was spun off as Celgene, and, in 1987, Celanese Corporation was acquired by Hoechst and merged with its American subsidiary, American Hoechst, to form Hoechst Celanese Corporation.
In 1998, Hoechst combined most of its industrial chemical operations in a new company, Celanese AG, and, in 1999, Hoechst spun off Celanese AG as a publicly traded, German corporation, traded on both the Frankfurt and New York stock exchanges.
On 16 December 2003, the U.S. private equity firm Blackstone Group announced a takeover offer for Celanese, after two years of wooing management. Shareholders formally approved the offer from Blackstone on 16 June 2004, and Blackstone completed the acquisition of Celanese AG. The company was delisted from the New York Stock Exchange, and Blackstone changed the entity's name to Celanese Corporation. Under Blackstone, a number of streamlining initiatives were undertaken, and several acquisitions were made.
On 21 January 2005, Celanese Corporation conducted an initial public offering and became a publicly traded corporation traded on the New York Stock Exchange under the symbol "CE". When Blackstone sold the last of its shares in 2007, it had made five times what it had invested and it, and its co-investors collected a $2.9 billion profit.
Class action lawsuits
In 1995 Hoechst Celanese was named along with Shell Oil as a defendant in a class action lawsuit for $7 billion in both past and potential future damages for which they were accused of being liable because of leaks in their polybutylene plumbing systems.
In January 2014 a class action lawsuit was filed on behalf of the residents of the community of Cannon's Campground and other residents of the area surrounding a former Hoechst Celanese industrial site in South Carolina. The lawsuit alleged the dumping of a number of toxic chemicals into local waters, which has diminished property values and caused a number of illnesses. Hoechst Celanese asked the courts to dismiss these charges as spurious, claiming that its discharges have not caused substantial harm to anyone or to the environment, and further asserting that a 3-year limit on tort claims has expired, relieving the company of any responsibility for damages which might be eventually discovered.
Acetyl intermediates is Celanese's largest segment, with a product range consisting of basic chemicals such as acetic acid, acetic anhydride, and vinyl acetate. Customers of Acetyl Intermediates and Industrial Specialties are in the chemical, paint and coatings, construction, and adhesive industries for polymerization.
Advanced engineered materials
Advanced engineered materials offers plastic polymers to customers in the automotive, electronics, telecommunications, and medical industries. Major products include: engineered plastics for fuel system components (provided by Ticona, the engineering polymer business of Celanese), conveyor belts, electronics, safety systems, emissions filtration, and fluid handling.
The food ingredients business Nutrinova produces the high intensity sweetener Sunett (acesulfame K), the preservatives Nutrinova potassium sorbate and sorbic acid, and other food ingredients. Major end-use markets include beverages, confections, baked goods, and dairy products.
Industrial specialties using the feedstock from acetyl intermediates manufactures polymer and emulsions, such as polyvinyl acetate emulsions, and specialty chemicals as ethylene vinyl acetate. Major end-use markets include polyvinyl alcohol producers, paper, mortar and gypsum, textiles, paints, coatings, adhesives manufacturers.
Advanced fuel technology
TCX Technology is a hydrocarbon-based ethanol production process developed and marketed by Celanese and Launched in November 2010. Celanese researchers developed the TCX Technology to create a fuel that helps countries reduce their need to import oil and gas. Celanese plans to invest $700 million to build one-to-two plants in China and one in Texas that will produce TCX-based ethanol.
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- David Carey and John E. Morris, King of Capital: The Remarkable Rise, Fall and Rise Again of Steve Schwarzman and Blackstone (Crown 2010), pp. 199-203.
- Celanese - History
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- http://shale.sites.post-gazette.com/index.php/news/archives/24447-law-prevents-company-from-making-fossil-fuel-based-ethanol. Missing or empty
- "How A Dumb Law Blocks A Great Way To Fuel America".
- Reisch, Mark (17 July 1995). "Shell, Hoechst Celanese face $7 billion lawsuit". Chemical & Engineering News. 73 (29): 8. doi:10.1021/cen-v073n029.p008.
- Kitzmiller, Felicia (25 February 2014). "Companies ask court to dismiss class action lawsuit". GoUpstate.com. Spartanburg, South Carolina.
- ""Celanese faces U.S. road block on ethanol" Reuters Jun. 15, 2011" Retrieved Apr. 6, 2012.
- ""Company sees its coal-to-ethanol technology as a game changer – for itself and the industry" ICIS Chemical Business Jan. 10, 2011" Retrieved Apr. 6, 2012.
- Turnbull Morris, Peter John. The American Synthetic Rubber Research Program. Pennsylvania Press. p. 258. ISBN 0-8122-8207-8.
- Official site
- Celanese Sustainability & Stewardship 2015
- "Analysis of Proposed Consent Order to Aid Public Comment" Federal Trade Commission
- Ernest Scheyder (May 11, 2010) "Interview-Celanese CEO Looks to Shake Up Product Line" Reuters
- Paul Tate (May 4, 2010) "Dialogue: Innovating the Future" Manufacturing Executive
- Wes Iversen (April 2010) "A Pragmatic Response to Climate-Change Regulation" Automation World
- Sarah Johnson (March 31, 2010) "The CFO as Chief of Objectivity" CFO
- Lou Reade (March 25, 2010) "Celanese Health and Safety Culture is Zero Tolerance" ICIS Chemical Business