Chemical and advanced materials maker
) announced that it will begin discussions regarding possible
closure of both the Roussillon acetic anhydride facility and the
vinyl acetate monomer (VAM) production unit in Tarragona, Spain.
The company's French and Spanish subsidiaries have informed their
employee delegates in Roussillon, France, and work council in
Tarragona about their intention to start an information and
consultation process on the contemplated closure of both
In May, Celanese divulged its plans to find a potential buyer
for both the facilities focusing on industrial candidates.
Celanese tried to find a buyer who would ensure operations at the
properties are executed in a sustainable manner in accordance
with the company's financial criteria, and also retain its
employees. However, Celanese did not succeed in finding a
suitable buyer and decided to plan for the possible closure of
both the acetic anhydride facility in Roussillon and the VAM
production unit in Tarragona.
The action was undertaken to sustain the competitiveness of
the Celanese acetyl business. The need for these contemplated
projects came from an assessment of Celanese's overall corporate
strategy, including an appraisal of the company's global
The subsidiaries of Celanese which operate the facilities will
begin the consultation process with local employee
representatives to diminish the social impact of these
contemplated closures as much as possible.
Celanese currently carries a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Asahi Kasei Corporation
Akzo Nobel NV
). While Asahi carries a Zacks Rank #1 (Strong Buy), both Akzo
Nobel and BASF hold a Zacks Rank #2 (Buy).
ASAHI KASEI CP (AHKSY): Get Free Report
AKZO NOBEL NV (AKZOY): Get Free Report
BASF SE (BASFY): Get Free Report
CELANESE CP-A (CE): Free Stock Analysis
To read this article on Zacks.com click here.