Price Increase Announced by Celanese for PA6 and PA66 Products

Celanese has announced a significant price increase for its PA6 and PA66 products across various regions, including Asia, the Americas, Europe, the Middle East, and Africa. Effective March 1, 2025, the price hike will reach up to $0.60 per kilogram, approximately 4348 yuan per ton. This decision comes in response to a challenging market environment, as the company reported a 6% decline in net sales for 2024, totaling $10.3 billion.

The drop in sales was primarily due to weakened demand in key sectors such as automotive, coatings, construction, and industrial applications. Celanese reported a comprehensive operating loss of $697 million for the year, with adjusted EBITDA at $1.6 billion. The engineering materials division saw a 9% decrease in net sales, alongside a 5% drop in volume and a 3% decline in pricing.

In the fourth quarter, the company's net sales fell to $2.4 billion, a 10% decrease from the previous quarter, resulting in an operating loss of $1.4 billion. CEO Scott Richardson acknowledged the ongoing challenges but emphasized the company’s commitment to achieving stable profit growth and cash flow generation.

Additionally, Celanese plans to close its Mylar specialty film production facility in Luxembourg, aiming to exit high-cost operations and enhance efficiency in lower-cost plants. The company is targeting over $75 million in cost reductions by 2025, primarily focusing on sales and administrative expenses.

Despite the unfavorable market conditions, Celanese is prioritizing three strategic initiatives: enhancing cost reductions, driving growth through AC optionality and EM channel models, and boosting cash flow to lower debt ratios.