Celanese Corporation, a global chemical and specialty materials company, announced the restructuring of their joint venture Korea Engineering Plastics Co. It is a joint venture of 50% by Celanese and 50% by Mitsubishi Gas Chemical Company, Inc. (MGC).
Celanese Corporation develops chemistry solutions and specialty materials used in most major industries and consumer applications. Celanese is headquartered in Dallas and employs approximately 8,500 people worldwide.
KEP will exclusively focus on manufacturing and supplying high-quality products to its shareholders. They will market them independently around the world. Due to this restructuring, Celanese will gain significant access to original equipment manufacturers in Asia and more direct participation in key markets outside of China.
“Celanese now has access to world-scale POM polymerization capabilities globally to achieve this restructuring. It has committed to providing access to approximately 70kta of POM production in Asia and corresponding global marketing rights. Through this restructuring, Celanese is enthusiastic about creating added value from its 50 percent stake in KEP. Celanese will also benefit from KEP’s technical manufacturing expertise and a broad product portfolio. The product portfolios will be marketed using Celanese’s project model, commercial teams, and global supply chain network.”
On this venture, Tom Kelly, Senior Vice President, Celanese Engineered Materials
After the restructuring is completed, Celanese and MGC will look into additional ways to influence KEP's manufacturing strengths, such as assessing the potential expansion of its polymer and compounding capabilities. In the final terms of the restructuring, Celanese agreed to sell land to KEP at its Ulsan, South Korea site, which KEP currently leases. It sold for a market value of approximately $10 million upon monetizing a non-strategic asset for Celanese and further solidifying KEP's presence in Ulsan.