Celanese and Tianjin to Form Vinyl Ester Joint Venture

Celanese Corporation, a global hybrid chemical company, today announced that its subsidiary, Celanese (China) Holding Co., Ltd. has signed an agreement to form a 50/50 joint venture with Hebei Shield Technology Co. Ltd., a subsidiary of Tianjin Shield Fine Chemical Company Limited, to manufacture, distribute and sell the vinyl ester of neodecanoic acid, a monomer used to enhance vinyl-based emulsions systems.

The joint venture will construct a plant in the New District Industrial Zone in Bazhou City, Hebei Province, China with an initial production capacity of 5,000 metric tons. Commercial production is expected to begin in late 2007 or early 2008. Celanese (Shanghai) International Trading Co., Ltd., a wholly owned subsidiary of Celanese Corporation, will be the exclusive, global agent for the venture.

“With this strategic venture, we will continue to drive growth and innovation opportunities for our leading acetyls franchise,” said John O’Dwyer, president, Celanese Acetyls and Celanese Asia. “This venture is another example of Celanese’s commitment to China and complements our other investments in the region. Customers will benefit from improved product availability and enhanced polymer system optionality.”

The vinyl ester of neodecanoic acid is used as a co-monomer, along with vinyl acetate monomer, in the production of vinyl acetate-based polymer systems for a variety of applications, including interior and exterior coatings, adhesives and thermal insulation. This polymer system provides a cost-effective alternative to styrene and acrylic-based polymers and offers application properties such as: alkali, UV, scrub and chemical resistance; water repellency; and ease of application.

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