Celanese to Acquire Nilit Plastics Division Nylon Compounding Business

SHARE


Acquisition positions Celanese as a global nylon solutions provider

DALLAS–(BUSINESS WIRE)–
Celanese Corporation (NYSE: CE), a global technology and specialty
materials company, and Nilit, a major independent producer of high
performance nylon polymers, fibers and compounds, today announced they
have signed a definitive agreement for Celanese to acquire Nilit
Plastics, the nylon compounding division of Nilit. Celanese will acquire
Nilit Plastics’ nylon compounding product portfolio as well as customer
agreements and manufacturing, technology and commercial facilities.
Nilit will retain ownership of the nylon fibers and nylon polymerization
businesses worldwide, including facilities in Israel, the United States,
China, and Brazil. Financial details of the transaction are not being
disclosed at this time.

“Nylon compounds continue to be a material of choice in automotive, E&E,
consumer and industrial applications, and this acquisition delivers on
Celanese’s intention to complement its broad portfolio by becoming a
leading, global nylon compound supplier,” said Scott Sutton, Celanese
executive vice president and president of Materials Solutions. “Celanese
will extend its global leadership position in the engineered materials
business with the acquisition of Nilit Plastics as nylon continues to be
adopted in growth industries where Celanese is already focusing
significant product, solution and customer-focused development
activities.”

“The nylon product portfolio of Nilit Plastics is one of the broadest in
the market for polyamide compounds. This breadth is matched by the
company’s expertise in compounds based on polyamides and an in-depth
knowledge of target markets and applications,” said Ilan Melamed,
managing director of Nilit Plastics. “Nilit Plastics is regarded by the
market and its customers as a solution provider with its ability to
develop and produce compounds exactly fit for the application. We are
pleased to join Nilit Plastics with the Celanese family and bring our
world-class products, technology and valued employee base to a global
engineered materials leader where both our products and people will
continue to grow.”

Celanese expects to integrate Nilit Plastics’ nylon compounding product
portfolio (http://www.nilit.com/plastics/)
and production capabilities into the Celanese engineered materials
business to include the following registered brands:

  • FRIANYL® flame retardant grades for electrical and
    electronics industries, meeting most stringent industry requirements,
    and in almost all colors.
  • NILAMID® technical grades for industrial and automotive
    applications.
  • NILAMID® specialty portfolio for extended performance
    requirements in terms of thermal, electrical, mechanical and
    tribological properties in particular.
  • ECOMID® grades containing high-quality polyamide fibers and
    textile recycled for a combination of quality, high lot-to-lot
    consistency and competitiveness.

(The most recent additions to the NILIT Plastics range, developed to
cater to new market trends, include “XS” and “XT” types. NILAMID
® XS
grades are compounds based on semi-aromatic polyamides, and FRIANYL
® XT
and NILAMID
® XT are compounds based on
polyphthalamide (PPA) provide superior performance, particularly in
terms of high heat resistance and mechanical strength.)

Nilit Plastics makes compounds based on polyamide 6 and 6,6 (PA6 / PA66)
as well as different types of partially aromatic polyamides, including
polyphthalamide (PPA). The division is dedicated to high quality
specialties and has developed more than 3,000 different formulations in
the last 40 years. Many of these compounds have been certified by
independent authorities and more than 85 compounds are UL and VDE listed
for flammability and electrical performances. Nilit Plastics has
compounding production facilities in Europe and China.

The parties expect to complete the transaction in the second quarter of
2017, pending customary closing conditions and regulatory approvals.
Until closing, Celanese and Nilit Plastics will continue to operate as
independent businesses.

About Celanese

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. Our two complementary
business cores, Acetyl Chain and Materials Solutions, use the full
breadth of Celanese’s global chemistry, technology and business
expertise to create value for our customers and the corporation. As we
partner with our customers to solve their most critical business needs,
we strive to make a positive impact on our communities and the world
through The Celanese Foundation. Based in Dallas, Celanese employs
approximately 7,000 employees worldwide and had 2015 net sales of $5.7
billion. For more information about Celanese and our product offerings,
visit
www.celanese.com
or our blog at
www.celaneseblog.com.

All registered trademarks are owned by Celanese International
Corporation or its affiliates.

About Nilit

Founded in 1969, Nilit (www.nilit.com)
is an independent global producer of high performance nylon polymers,
fibers and compounds. Nilit works closely with its international
customer base from offices and production sites in Israel, the United
States, Europe, Latin America, and China. Nilit is committed to creating
innovative, customized nylon (polyamide) 6.6 solutions. With expertise
in polymerization and compounding, as well as spinning and texturing,
Nilit is known for its innovation and its tailored solutions for
customers in the industries served. Nilit offers a comprehensive range
of quality products and services for apparel and engineering
thermoplastics applications.

Forward-Looking Statements

This release may contain “forward-looking statements,” which include
information concerning the company’s plans, objectives, goals,
strategies, future revenues or performance, capital expenditures and
other information that is not historical information. When used in this
release, the words “outlook,” “forecast,” “estimates,” “expects,”
“anticipates,” “projects,” “plans,” “intends,” “believes,” and
variations of such words or similar expressions are intended to identify
forward-looking statements. All forward-looking statements are based
upon current expectations and beliefs and various assumptions, including
the announced acquisition. There can be no assurance that the company or
its customers will realize these benefits or that these expectations
will prove correct. There are a number of risks and uncertainties that
could cause actual results to differ materially from the forward-looking
statements contained in this release, including with respect to the
acquisition. Numerous factors, many of which are beyond the company’s
control, could cause actual results to differ materially from those
expressed as forward-looking statements. Other risk factors include
those that are discussed in the company’s filings with the Securities
and Exchange Commission. Any forward-looking statement speaks only as of
the date on which it is made, and the company undertakes no obligation
to update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances.

Celanese Corporation
Investor Relations:
Surabhi
Varshney, +1 972 443 3078
surabhi.varshney@celanese.com
or
Media
Relations – Global:

W. Travis Jacobsen, +1 972 443 3750
william.jacobsen@celanese.com
or
Media
Relations Asia (Shanghai):

Helen Zhang, +86 21 3861 9279
lan.zhang@celanese.com
or
Media
Relations Europe (Germany):

Jens Kurth, +49(0)69 45009 1574
j.kurth@celanese.com

Source: Celanese Corporation