Celanese Raises Prices for Engineering Plastics Effective March 1 2025

Celanese has announced a significant price increase for a range of products across multiple regions, including Asia, the Americas, Europe, the Middle East, and Africa. This price adjustment will take effect on March 1, 2025, and may vary based on contractual agreements. Certain grades are expected to see price hikes exceeding those specified in the announcement.

In Asia, the PA6 and PA66 products will experience the highest increase of $0.6 per kilogram, approximately 4348 CNY per ton. This move comes amid a challenging market environment, where Celanese's net sales for the entire year of 2024 totaled $10.3 billion, reflecting a 6% decline year-on-year. The downturn is attributed to ongoing weakness in key end markets such as automotive, coatings, construction, and industrial sectors.

The company reported a comprehensive operating loss of $697 million for 2024, with adjusted EBITDA reaching $1.6 billion. The engineering materials division specifically saw a 9% drop in sales, primarily due to a 5% decrease in volume and a 3% decline in pricing, with negligible currency impact.

In the fourth quarter, Celanese’s net sales were $2.4 billion, down 10% from the previous quarter, resulting in an operating loss of $1.4 billion. The CEO, Scott Richardson, stated that the company aims to achieve stable profitability and cash generation in light of the current demand environment.

Celanese is also closing its Mylar specialty film production facility in Luxembourg, a strategic decision to exit high-cost operations and enhance productivity in lower-cost facilities. The company is committed to cost reduction initiatives, targeting over $75 million in savings by 2025, primarily from selling and administrative expenses.

Despite the unfavorable market conditions, Celanese is focusing on three strategic priorities: enhancing cost-cutting efforts, driving growth through their AC optionality model and EM channel model, and improving cash flow to reduce leverage on their balance sheet.