Celanese to shut Ulsan compounding plant and move production to China and India

US-based speciality chemicals company, Celanese Corporation, is closing its Engineered Materials compounding facility in Ulsan, South Korea, with immediate effect, as part of a production network optimisation under its 'Grow & Fortify' strategy.

Production volumes from Ulsan will be transferred to the company's plants in Nanjing and Shenzhen in China, and to its facility in Silvassa, India.

In a press note, Celanese said these actions will fortify the operating structure of its Engineered Materials business, while optimising the company’s cost and manufacturing production footprint to leverage its compounding assets in Shenzhen, Nanjing and Silvassa. These actions are also expected to strengthen the company’s regional supply chain network.

Celanese said it would fulfil all contractual obligations to customers and ensure a smooth transition of production and compounding activities to the receiving facilities. The company's engineered materials portfolio includes PET (Polyethylene Terephthalate), PA (Polyamide), PBT (Polybutylene Terephthalate) and HTN (High-Temperature Nylon) grades used across industrial and consumer applications in the region.

“The broader Asia region represents opportunities for expansion, and Celanese is building manufacturing and compounding capabilities close to its customer base to better meet this growing demand,” the company stated.