Chemical and advanced materials maker, Celanese Corporation (CE - Free Report) declared that it has commenced production at its latest vinyl acetate ethylene (VAE) production unit. The unit is located at the Celanese manufacturing facility on Jurong Island, Singapore, and will support the rising demand for eco-friendly materials in the Southeast Asia region including Australia, India and New Zealand.
The facility is close to raw material suppliers that leads to improved transportation logistics. It also gives Celanese the opportunity to increase production capacity so that it can provide more high-demand, high-quality VAE emulsions products in Singapore as well as across Asia, an area focusing on low-emission products and production.
The new unit adds a third facility to the Celanese’s VAE investment in Asia and the fourth production unit within the Singapore plant.
Celanese's VAE technology produces clean, eco-friendly, water-based emulsions that the building, construction and paper industries worldwide use to meet quality, marketing and economic goals. Celanese’s EcoVAE is an emulsion that can be formulated into low-odor and low-to-near-zero volatile organic compounds interior paints and coatings. Celanese remains committed to providing local formulation and application expertise to enable its customers in Asia to deliver high-value, high-quality products and build on their success.
Manufacturers use VAE to produce environmentally friendly products including paints, architectural coatings, carpet backings and adhesives for woodworking and paper packaging as well as apparel and textile finishing. One of the products with very high demand is Celanese’s EcoVAE, an emulsion that can be formulated into low-odor and low-to-near-zero VOC (volatile organic compounds) interior paints and coatings. EcoVAE addresses formulation and regulatory concerns and appeals to environmentally conscious consumers.
Celanese is the world leader in VAE production and sales. Further, it is the only producer of a low-emissions emulsion.
Celanese kept its earnings streak alive with a beat in second-quarter 2016. The company reported adjusted earnings of $1.59 per share in the quarter. The figure was a penny higher than the prior-year quarter tally and above the Zacks Consensus Estimate of $1.55.
Celanese reported quarterly sales of $1,351 million, missing the Zacks Consensus Estimate of $1,418 million. The top line declined roughly 8.5% year over year.
Celanese is exposed to pricing pressure and is still witnessing soft acetyl demand in China given the sluggish economic conditions. Acetyl intermediates margins are anticipated to remain strained in the near term.
Celanese currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the chemical space include Innophos Holdings Inc. (IPHS - Free Report) , Mitsubishi Chemical Holdings Corporation (MTLHY - Free Report) and Innospec Inc. (IOSP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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