Celanese Announces Price Hike Amid $697 Million Loss

Recently, Celanese announced a price increase on 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, with specific increases varying based on contractual agreements. In some cases, price hikes could exceed the amounts mentioned in the announcement.

For the Asian market, the prices of PA6 and PA66 products will rise by up to $0.60 per kilogram, approximately 4,348 yuan per ton. This decision comes in light of the company’s $10.3 billion net sales for 2024, which marks a 6% decrease year-over-year, primarily due to ongoing weak demand in key end markets such as automotive, coatings, construction, and industrial sectors.

Celanese reported a comprehensive operating loss of $697 million for 2024, while adjusted EBIT stood at $1.6 billion. The engineering materials segment experienced a 9% decline in net sales, with a 5% drop in sales volume and a 3% decrease in pricing, while currency fluctuations had minimal impact.

In the fourth quarter, Celanese's net sales fell to $2.4 billion, a 10% decline from the previous quarter, leading to an operating loss of $1.4 billion. CEO Scott Richardson highlighted the company's commitment to achieving stable profit growth and generating cash flow despite the challenges posed by deteriorating market demand.

Additionally, Celanese announced the closure of its Mylar specialty film production facility in Luxembourg. This strategic decision aims to exit high-cost operations and enhance efficiency at lower-cost plants. The company plans to achieve over $75 million in cost reductions by 2025, primarily focusing on sales and administrative expenses.

Despite the unfavorable market environment, Celanese is prioritizing three strategic initiatives: enhancing cost-cutting measures, driving growth through the AC optionality model and EM channel model, and increasing cash flow to reduce leverage.