Chemical and advanced materials maker,
), and Japan's Mitsui & Co., Ltd. have entered into a 50-50
joint venture for making methanol at Celanese's integrated
chemical plant in Clear Lake, Tex.
Methanol is used as a basic raw material in a wide range of
industries, including the manufacture of adhesives, synthetic
resins and pharmaceuticals.
As partners in the joint venture, Celanese and Mitsui will
build a methanol facility which will have an annual capacity of
1.3 million tons. The facility is expected to begin operations in
The methanol facility will use low-cost natural gas, which is
plentiful in the U.S. Gulf Coast region as a feedstock, and will
also benefit from the existing infrastructure at Celanese's Clear
The total shared capital and expense involved in the facility
would amount to about $800 million, of which, Celanese will have
to invest roughly $300 million.
Celanese's Clear Lake facility, where it had invested earlier,
along with the attractive economics of natural gas in the U.S.
Gulf Coast region, provides it with an attractive growth
Mitsui, on the other hand, will be able to generate additional
value in the gas product chain ranging from its shale gas reserve
in the U.S. to methanol along with Celanese's advanced
capabilities in manufacturing, operations and safety. Mitsui has
a global sales network, while Celanese is one of the world's
biggest users of methanol.
Celanese currently carries a short-term (1 to 3 months) Zacks
Rank #1 (Strong Buy).
Other companies in the chemical industry that are worth
Shin-Etsu Chemical Co., Ltd.
). While Shin-Etsu Chemical and Methanex retain a Zacks Rank #1
(Strong Buy), FMC carries a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis
FMC CORP (FMC): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
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