Celanese Corp. has placed force majeure sales limits on feedstocks acetic acid and vinyl acetate monomer (VAM),
The action affects sales of those materials in the Western Hemisphere, officials with Dallas-based Celanese said in a news release. Acetic acid is used to make acetal resins and also is a primary ingredient in vinegar production. VAM can be used to make polyvinyl acetate (PVA) and other specialty resins.
Celanese officials added that the declaration "comes as a result of intensifying force majeure conditions and operational failures experienced by multiple suppliers of critical raw materials essential to Celanese's production of these products."
They added that production challenges caused by these raw material supply disruptions, as well as other operational issues in its acetyl chain U.S. Gulf Coast network, "are being assessed and actions are being taken to offset production losses." While under sales control, all non-contracted orders will be reviewed on a case-by-case basis.
Celanese expects its second quarter U.S. Gulf Coast production of acetic acid and VAM to be down 15-20 percent "as a result of these temporary challenges which we are still navigating," said Mark Murray, acetal senior vice president. He added that the primary financial impact of these challenges in the second quarter will be from incremental costs associated with production at higher cost facilities, external sourcing and logistics in order to minimize impacts to our customers.
There may also be a volume impact in the quarter depending on the magnitude of lost production, Murray said.
Officials added that Celanese can't provide any further details or timing of the full impact to customers or to its financial outlook. The firm will comment further on the resolution of these temporary challenges and the financial impact when it reports second quarter earnings, they said.
Celanese ranks as the world's largest acetal maker and is a major producer of nylon and other engineering resins. The firm posted sales of $10.9 billion in 2023.