Celanese to Close Mechelen Operations
- Operations in Mechelen to end by September 2024.
- Closure costs estimated at $60-75 million.
- Employee termination costs pending consultation.
- Facility produces engineering thermoplastics and elastomers.
Closure Announcement
Celanese plans to close its operations in Mechelen, Belgium, a facility acquired through the M&M acquisition. This decision aligns with the company's strategy to exit high-cost facilities and enhance productivity in lower-cost locations.
Timeline and Process
Manufacturing operations in Mechelen are expected to cease permanently by the end of September 2024. This timeline is subject to a consultation process with works council and union representatives, which has already commenced.
Financial Implications
The closure is projected to incur expenses between $60-75 million, primarily due to accelerated depreciation of fixed assets and facility-related shutdown costs. Employee termination costs are not included in this estimate and will be determined through the consultation process.
Facility Output
The Mechelen facility produces engineering thermoplastics and elastomers, serving industries such as automotive, electrical and electronics, consumer goods, and industrial applications.