Celanese

Celanese is an American technology and specialty materials company headquartered in Irving, Texas. Its modern business combines large-scale chemical production with engineered polymers, cellulose acetate products, food ingredients, emulsions, and other specialty materials. The company serves automotive, electronics, medical, construction, coatings, adhesives, packaging, textiles, food and beverage, and tobacco-related markets. Its principal activities are organized around acetyl intermediates, advanced engineered materials, consumer specialties, and industrial specialties, with additional development of fuel-related technologies. The business traces its origins to the American Cellulose & Chemical Manufacturing Company, founded in New York City in 1918 by Swiss chemist Camille Dreyfus. The original purpose was to develop cellulose-based materials and yarns as alternatives to silk and other imported fibers. During World War I, the company established a plant in Cumberland, Maryland, an inland location selected for access to water, coal, rail transportation, and protection from possible attacks on coastal industrial sites. Commercial production at the facility began in 1924. In 1925, the company introduced the Celanese name, combining “cellulose” with “ease” to emphasize the easy-care properties of acetate fabrics. The corporate name became Celanese Corporation of America in 1927. Following World War II, Celanese expanded its international manufacturing and product portfolio. It began producing acetate fiber in Mexico in 1947 and by the late 1950s operated a substantial network of plants, research facilities, and product groups. The company used architecture and design, including the 1959 Celanese House in New Canaan, Connecticut, to demonstrate applications for its synthetic materials. Over subsequent decades, it moved beyond fibers into industrial chemicals, high-performance polymers, protective-apparel materials, and other specialty products. The company underwent several major ownership and structural changes. It acquired selected operations of Imperial Chemical Industries in 1982, established a South Carolina facility for polybenzimidazole in 1983, and separated its pharmaceutical operations as Celgene in 1986. Hoechst AG acquired Celanese Corporation in 1987, creating Hoechst Celanese. During the late 1990s, Hoechst reorganized much of its industrial-chemical portfolio into Celanese AG, which was later spun out as a publicly traded German company. Blackstone acquired Celanese AG in 2004, returned the business to the Celanese Corporation name, and pursued operational streamlining and acquisitions. Celanese completed an initial public offering on the New York Stock Exchange in January 2005 under the symbol CE. Blackstone disposed of its remaining investment by 2007. Celanese is particularly prominent in acetyl chemistry. It is described as a leading global producer of acetic acid and the largest producer of vinyl acetate monomer, materials used in adhesives, coatings, construction products, polymers, and numerous chemical processes. The company operates production facilities and research centers across multiple countries, including large acetic-acid plants in Texas, Singapore, and China. Its advanced engineered materials business supplies polymers for demanding applications such as fuel systems, emissions control, electronics, safety equipment, medical devices, fluid handling, and industrial conveyance. The company has also reshaped its portfolio through divestitures and acquisitions. Its engineering-polymer capabilities were expanded through the 2016 acquisition of Italy’s SO.F.TER Group. In 2020, Celanese sold its 45 percent interest in Polyplastics to Daicel, which already held the remaining 55 percent. Other portfolio actions included the sale of its polyvinyl alcohol business to Sekisui Chemical in 2009. Celanese has promoted TCX Technology, a process for producing ethanol from hydrocarbon feedstocks, as a way to…

Celanese began in 1918 as the American Cellulose & Chemical Manufacturing Company, also known as Amcelle. Swiss chemist Camille Dreyfus founded the company in New York City to develop cellulose-based materials and textile fibers. A manufacturing site in Cumberland, Maryland, originated during World War I. Its inland position offered access to the Potomac River, coal, rail connections, and relative protection from attacks. Production was delayed, but the plant began commercial operations on Christmas Day in 1924, making cellulose acetate fabrics and yarns intended to provide an alternative to silk. The Celanese name appeared in 1925. It was formed from “cellulose” and “ease,” reflecting the company’s promotion of acetate textiles as easier to clean and maintain. The business formally became Celanese Corporation of America in 1927. After the war, the company expanded internationally and entered Mexico with an acetate-fiber plant near Ocotlán in 1947. By 1958, it had developed a broad domestic manufacturing and research network, with 13 plants, three research and development centers, approximately 30 product groups, and about 13,000 employees. Celanese used product design and architecture to demonstrate the potential of synthetic materials. In 1959, it commissioned architect Edward Durell Stone to create the Celanese House, a model residence in New Canaan, Connecticut. The project showcased contemporary applications of company materials and formed part of a wider effort to connect chemical innovation with consumer design. The company diversified substantially during the 1980s. In 1982, it acquired selected operations of Imperial Chemical Industries, including the Fiber Industries plant in Salisbury, North Carolina. In 1983, it constructed a polybenzimidazole facility in Rock Hill, South Carolina. Polybenzimidazole was used in high-performance protective apparel, including firefighters’ equipment and astronaut suits. In 1986, Celanese separated its pharmaceutical business as Celgene. Hoechst AG acquired Celanese Corporation in 1987 and combined it with American Hoechst to form Hoechst Celanese Corporation. The following decade brought further restructuring. Hoechst Celanese sought to consolidate and rationalize its international operations, while its Trevira division was sold in 1998 to a consortium involving KoSa, Koch Industries, and Mexican partners. Hoechst also organized much of its industrial-chemical activity into Celanese AG. In 1999, Celanese AG was spun off as a publicly traded German company, listed in Frankfurt and New York, in a restructuring connected to Hoechst’s broader combination with Rhône-Poulenc. Blackstone announced a takeover offer in December 2003 after pursuing the company for approximately two years. Shareholders approved the transaction in June 2004, and the acquisition was completed later that year. The company was delisted from the New York Stock Exchange, renamed Celanese Corporation, and subjected to operational streamlining and portfolio changes under private-equity ownership. Celanese returned to the public market through a January 2005 initial public offering under the symbol CE. Blackstone sold its remaining shares by 2007. The modern company has focused on acetyl intermediates, engineered materials, consumer specialties, and industrial specialties. Its acetyl business produces acetic acid, acetic anhydride, vinyl acetate monomer, and related chemicals used in coatings, adhesives, construction materials, and polymer production. Advanced engineered materials supplies plastics and compounds for automotive, electronics, telecommunications, medical, safety, emissions, and fluid-management applications. Consumer specialties includes cellulose acetate, food preservatives, high-intensity sweeteners, and cellulose acetate film. Industrial specialties converts acetyl feedstocks into emulsions and polymers for paper, construction, textiles, coatings, and adhesives. Celanese expanded its engineering-materials portfolio with the 2016 acquisition of SO.F.TER Group in Italy. It sold its polyvinyl alcohol business to Sekisui Chemical in 2009 and divested its 45 percent interest in Polyplastics to Daicel in 2020, leaving Daicel with full ownership. The company also developed TCX Technology, launched in 2010, to produce ethanol from hydrocarbon feedstocks. Its historical record includes significant litigation over polybutylene plumbing systems and a later environmental class action concerning alleged contamination near a former South Carolina facility.

1. 2020Polyplastics stake sold to Daicel

   Celanese sold its 45 percent interest in Polyplastics to Daicel, which became the company’s sole owner.

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2. 2016SO.F.TER Group acquired

   The acquisition expanded Celanese’s engineering-polymer and compounding capabilities.

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3. 2010TCX Technology launched

   Celanese introduced its hydrocarbon-based ethanol-production process.

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4. 2005Celanese completes initial public offering

   Celanese Corporation returned to the New York Stock Exchange under the ticker CE.

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5. 2004Blackstone acquisition completed

   Blackstone completed its acquisition of Celanese AG, after which the business returned to the Celanese Corporation name.

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6. 1999Celanese AG becomes publicly traded

   Celanese AG was spun out as a publicly traded German company in Hoechst’s broader corporate restructuring.

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7. 1987Hoechst acquires Celanese

   Hoechst AG acquired Celanese Corporation and combined it with American Hoechst to create Hoechst Celanese Corporation.

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8. 1986Pharmaceutical business separated as Celgene

   Celanese spun off its pharmaceutical operations into the company later known as Celgene.

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9. 1983Polybenzimidazole plant built in South Carolina

   Celanese opened a facility in Rock Hill to produce high-performance polybenzimidazole materials.

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10. 1982Selected ICI operations acquired

    Celanese acquired selected operations of Imperial Chemical Industries, including the Salisbury, North Carolina, fiber facility.

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11. 1947Acetate-fiber production begins in Mexico

    Celanese established acetate-fiber manufacturing near Ocotlán, Jalisco.

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12. 1927Company becomes Celanese Corporation of America

    The business adopted Celanese Corporation of America as its formal corporate name.

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13. 1925Celanese name introduced

    The company introduced the Celanese name to market easy-care cellulose acetate textiles.

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14. 1924Cumberland plant begins commercial production

    The Maryland facility began producing cellulose acetate fabrics and yarns after wartime delays.

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15. 1918American Cellulose & Chemical Manufacturing Company founded

    Camille Dreyfus founded the company in New York City to develop cellulose-based materials and synthetic textile fibers.

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Global specialty materials and chemical technology supplier combining high-volume acetyl chemistry with engineered polymers, cellulose acetate, consumer ingredients, and industrial specialty products.

• Acetyl intermediatesBasic and intermediate chemicals

  Celanese’s acetyl intermediates portfolio includes acetic acid, acetic anhydride, vinyl acetate monomer, and related chemicals. These materials are used as feedstocks or functional ingredients in adhesives, coatings, construction products, polymers, paints, and other industrial processes. Acetic acid is especially important to the company’s manufacturing footprint, with large plants in the United States, Singapore, and China.

• Advanced engineered materialsEngineering polymers

  This business supplies engineered plastics and compounds for technically demanding applications. End markets include automotive fuel systems, emissions-control equipment, electronics, telecommunications, medical devices, safety systems, conveyor components, filtration, and fluid handling. Celanese’s engineering-polymer capabilities include technologies associated with Ticona and were expanded through the acquisition of SO.F.TER Group in 2016.

• Cellulose acetate productsCellulose-based materials1924

  Celanese is a major producer of cellulose acetate, including acetate tow used primarily in cigarette filters and acetate materials used in apparel and garment linings. The company also produces Clarifoil cellulose acetate film, made from wood pulp and described as biodegradable and compostable under specified home and industrial composting conditions.

• Consumer specialtiesFood ingredients and specialty materials

  The consumer-specialties portfolio includes high-intensity sweetener Sunett, potassium sorbate, sorbic acid, and other food ingredients. These products serve beverage, confectionery, bakery, and dairy applications. The portfolio also includes cellulose acetate products used in consumer and filtration markets.

• Industrial specialtiesPolymers and emulsions

  Industrial specialties uses acetyl-intermediate feedstocks to manufacture polymers and emulsions, including polyvinyl acetate emulsions and ethylene-vinyl acetate products. Customers include producers and users in polyvinyl alcohol, paper, mortar, gypsum, textiles, paints, coatings, and adhesives.

• TCX TechnologyFuel-production technology2010

  TCX Technology is Celanese’s hydrocarbon-based ethanol-production process. Launched in 2010, it was developed to enable fuel production from hydrocarbon feedstocks and to help countries reduce reliance on imported oil and gas. The company discussed potential plant investment in China and Texas.

• 1959Celanese House

  United States

  Celanese commissioned architect Edward Durell Stone to create a model home in New Canaan, Connecticut. The project demonstrated contemporary uses of synthetic materials and connected the company’s chemical products with residential design and consumer lifestyles.

  Outcome. Public showcase for the company’s materials and design-oriented innovation.

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• 2020Exit Polyplastics joint ownershipM&A

  Daicel already owned 55 percent of Polyplastics, while Celanese held the remaining 45 percent.

  What changed. Celanese sold its stake to Daicel, transferring full ownership of Polyplastics to Daicel.

  Aftermath. Celanese simplified its portfolio and exited its ownership position in Polyplastics.

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• 2016Acquire SO.F.TER GroupM&A

  Celanese sought to strengthen its advanced engineered materials platform and polymer-compounding capabilities.

  What changed. The company acquired SO.F.TER Group, an engineering-polymer business based in Forlì, Italy.

  Aftermath. The transaction expanded Celanese’s capabilities in engineered plastics and polymer production.

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• 2010Introduce TCX ethanol technologyProduct launch

  Celanese sought to develop fuel technologies that could reduce dependence on imported oil and gas.

  What changed. The company launched TCX Technology, a process for producing ethanol from hydrocarbon feedstocks.

  Aftermath. Celanese discussed possible investments in ethanol plants in China and Texas, but the available reference does not document the final construction or operating status of those projects.

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• 2005Return to public ownershipStrategy

  After Blackstone acquired and restructured Celanese, the company sought to return to the public markets.

  What changed. Celanese completed an initial public offering and began trading on the New York Stock Exchange as CE.

  Aftermath. Celanese operated as a publicly traded specialty materials and chemicals company.

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• 1986Separate pharmaceutical operations as CelgeneStrategy

  Celanese reorganized its business portfolio by separating its pharmaceutical operations from the broader chemicals and materials business.

  What changed. The pharmaceutical operations were spun off as Celgene.

  Aftermath. Celanese continued concentrating on chemicals, fibers, polymers, and materials technologies.

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• 2014Spartanburg-area contamination lawsuitControversy

  A class action brought by residents of Cannon’s Campground alleged that groundwater and surface-water contamination associated with a Hoechst-Celanese manufacturing facility caused health and environmental risks and reduced property values. Hoechst Celanese disputed the allegations and argued that the claims were legally deficient and time-barred. The available reference does not provide a final resolution.

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• 1985Polybutylene plumbing class actionControversy

  Hoechst Celanese, Shell Oil, and US Brass were named in a class action concerning polybutylene plumbing systems. The litigation alleged that information about degradation when exposed to chlorine in municipal water systems had been concealed while the products continued to be marketed. The case was settled in 1995.

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• 2020Celanese completes acquisition of Polyplastics stake sale to Daicel

  Celanese sold its 45 percent interest in Polyplastics to Daicel, which already owned the other 55 percent, giving Daicel full ownership of the engineering-plastics company.

  M&A
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• 2016Celanese expands engineering-polymers capabilities through SO.F.TER Group acquisition

  Celanese acquired Italy-based SO.F.TER Group, strengthening its advanced engineered materials and polymer-compounding capabilities.

  M&A
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• 2010Celanese launches TCX Technology

  Celanese introduced TCX Technology, a process intended to produce ethanol from hydrocarbon feedstocks and support fuel production in markets seeking to reduce imported oil and gas.

  Product launchOther
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• 2009Celanese sells polyvinyl alcohol business to Sekisui Chemical

  The company divested its polyvinyl alcohol business to Sekisui Chemical as part of portfolio management.

  M&A
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• 2005Celanese returns to public markets

  Celanese Corporation completed an initial public offering on the New York Stock Exchange under the ticker CE after its acquisition and restructuring under Blackstone ownership.

  M&A
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1. Celanese