DALLAS & BEIJING--(BUSINESS WIRE)--Celanese Corporation (NYSE:CE), a global specialty materials company, today announces that it has signed a Letter of Intent (LOI) with Chengzhi Shareholding Co., Ltd., to further the development of acetic acid-based ethanol as a clean energy source in China.
From 2014 to 2017, Celanese operated a 275,000 metric ton per year industrial ethanol unit at the Nanjing, China Chemical Industrial Park. This ethanol unit used Celanese’s TCX® technology to produce ethanol and historically sourced feedstock from the company’s acetic acid plant co-located at its Nanjing manufacturing facility.
Pursuant to the LOI, Celanese would sell its Nanjing ethanol unit to Chengzhi, along with all related assets, including equipment, storage tanks and pipelines as well as all necessary land rights and permits. Additionally, Celanese would contribute its TCX® technology, along with all associated patents, know-how and trade secrets, into a newly formed joint venture. Through this joint venture the two companies would collaborate to further strengthen the TCX® technology and promote additional opportunities for utilizing the TCX® ethanol process technology within the People's Republic of China.
“We look forward to realizing what Chengzhi and Celanese can achieve through this partnership,” said Todd Elliott, senior vice president of Celanese’s Acetyls business. “By combining Celanese’s process technology expertise with Chengzhi’s strong resources in China coupled with its rich experiences in manufacturing and marketing, we believe the joint venture can play a big role in addressing clean energy needs while creating new demand for acetic acid.”
The LOI announced today is subject to the parties reaching definitive agreements. The two companies are also committed to working together to implement a smooth transition leading to a restart of the Nanjing ethanol unit as soon as possible, likely in 2019. Financial terms and conditions are not being disclosed at this time.
About Chengzhi Shareholding Co., Ltd.
Chengzhi Shareholding Co., Ltd. (Stock Code: 000990) was registered in October 1998 and listed on the Shenzhen Stock Exchange on July 6, 2000. Chengzhi Shareholding is a high-tech company whose major shareholder is Tsinghua University; additionally, it is a member enterprise of Tsinghua Holdings Co Ltd., a key enterprise in Jiangxi Province, and the industrial platform for industrializing Tsinghua University’s scientific and technological achievements in fields such as clean energy, functional materials, and medical healthcare.
Chengzhi Shareholding has adhered to the core concept of “Sincerity, Focus and Social Commitment,” the management concept of “Integrity, Normalization, Efficiency and Innovation,” and the talent strategy of “Caring for People and Gathering Professionals.” National industry strategy is centered around Bohai and the surrounding region, coastal southern China, and the Yangtze River Delta and extends to the entire country with over 30 subsidiaries located in Beijing, Jiangxi, Jiangsu, Anhui, Guangdong, Hebei, Liaoning, and other countries. For more information about Chengzhi Corporation and its product offerings, visit www.chengzhi.com.cn/
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2017 net sales of $6.1 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.
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This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions, including the announced joint venture. There can be no assurance that the company will realize these benefits or that these expectations will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.