Celanese Completes Acquisition of Linde’s Synthesis Gas Unit

In a press release on February 13, Celanese (CE) announced that it had completed the acquisition of a synthesis gas production unit from Linde. Celanese announced this acquisition news on January 15, 2019, but didn’t disclose the financial aspects of this deal.

The production facility is located at the Celanese Clear Lake acetyl intermediates facility in Pasadena, Texas. The facility can produce 365 kilotons of synthesis gas per year. This acquisition helps CE to produce raw materials and bring down its acetic acid production cost. The impact of the acquisition is expected to be visible in its Q1 2019 earnings.

Todd Elliott, the senior vice president of the Acetyls segment, said, “With on-site production capability of synthesis gas – a crucial intermediate raw material for the production of acetic acid, hydrogen and methanol – Celanese is able to manage future productivity and growth configuration options for the world’s largest acetyl intermediates production facility, as well as the production network of Celanese acetyls plants globally.”

Celanese stock declined 0.4% and closed at  $98.82. CE’s peers Eastman Chemical (EMN) and DowDuPont (DWDP) also remained flat with a marginal decline of  0.2% and 0.4%, respectively, while LyondellBasell (LYB) was up by 0.5%. The S&P 500 (SPY) was marginally up by 0.3%.