Celanese to Close Engineering Materials Plant in Ulsan, South Korea, Shift Production to China and India

On June 4, Celanese, a global specialty materials and chemical company, announced a key capacity optimization initiative to support the “growth and enhancement” strategy of its Engineered Materials business. Over the past several years, Celanese has continued to deploy world-class compounding facilities around the globe and has taken multiple measures to ensure supply stability, providing customers with engineered plastics products that offer excellent performance, quality, and consistency.

This capacity adjustment will involve the shutdown of the company’s engineered materials compounding plant located in Ulsan, South Korea, with all production and processing at the facility ceasing immediately. The company will fully support customer commitments and steadily transition the existing compounding production tasks to other production sites in the Asia-Pacific region to ensure a smooth business transition.

The production capacity of the original Ulsan factory will be transferred to the factories in Nanjing and Shenzhen, China, as well as the production base in Silvassa, India. This adjustment by Celanese aims to improve the operational structure of the engineering materials business, optimize production costs and global capacity layout, fully leverage the advantages of the high-quality modification production lines in Nanjing, Shenzhen, and Silvassa, and further enhance the supply chain system in the Asia-Pacific region.

The company primarily focuses on engineering plastics such as PET, PA, PBT, and high-temperature nylon HTN, which serve as key raw materials for the development of various industries and regional industrial sectors. The Asia-Pacific market offers broad room for expansion, and Celanese is establishing compounding capacity close to downstream customers to meet continuously growing market demand.