Celanese's Specialty Materials and Low-Cost Acetyl Products Should See Long-Term Growth

Celanese is the world's largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomer and emulsions. These products are used in the company’s specialized end products or sold externally. Celanese produces these commodity chemicals in its acetyl chain segment (roughly 53% of 2023 operating EBITDA), which primarily serves the automotive, cigarette, coatings, building and construction, and medical end markets. Celanese's Clear Lake, Texas, plant benefits from a cost advantaged feedstock from low-cost US natural gas. The company has expanded its acetic acid production capacity at Clear Lake in recent years to take advantage of the low-cost US natural gas-based feedstock. This should benefit segment margins as we expect US natural gas prices to remain well below natural gas prices in Europe, Asia, and Brent oil-based feedstock.