Celanese Signs Memorandum of Understanding with Push Group
By Business Wire News
By Business Wire News
Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today announced that it has entered into a Memorandum of Understanding with Push Group Co., Ltd. (Push Group), with respect to the formation of a new joint venture focused on the production of cellulose acetate-based specialty products, including high-quality plastics and films.
“This is an exciting opportunity for Celanese, together with Push Group, to add a specialty cellulose plastics focus to our leading cellulose acetate capabilities and our leading engineered thermoplastics platform, and participate in the development of the next generation of products manufactured with cellulose acetate flake,” said Scott Sutton, president, Materials Solutions for Celanese.
Push Group is a wholly-owned subsidiary of Sichuan Wuliangye Group Co., Ltd., and is based in Yibin, China. Although definitive terms of several ancillary agreements are still under negotiation, Celanese and Push Group have concluded the negotiation of the joint venture agreement that would govern their relationship and have agreed to extend the period of exclusivity related to formation of the project.
Pursuant to the terms of the joint venture agreement, Push Group would contribute certain existing cellulose acetate-related assets, and Celanese would contribute certain technology and its leading cellulose acetate operational know-how and experience. The execution of the Joint Venture Agreement and certain other remaining ancillary documents is expected to occur before the end of March 2016, with closing of the transaction subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals and third party consents.
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. With sales almost equally divided between North America, Europe and Asia, the company uses the full breadth of its global chemistry, technology and business expertise to create value for customers and the corporation. Celanese partners with customers to solve their most critical needs while making a positive impact on its communities and the world. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of $6.8 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.
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