Celanese Corp 8-K, filed Oct 31, 2023
Celanese Corp (CE)
8-K
2023-10-31
For: 2023-10-31
View Original
Added on
April 12, 2026
About this 8-K
Celanese Corp filed this 8-K on October 31, 2023.
Items reported
- Item 2.05: Exit or restructuring costs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 31, 2023 (October 31, 2023 )
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| Item 2.05 | Costs Associated with Exit or Disposal Activities. | ||||
On October 31, 2023, Celanese Corporation (“Celanese” or the “Company”) announced the intended closure of its Polyamide 66 (also known as PA66 or Nylon 66) and High-Performance Nylon (HPN) polymerization units at its facility in Uentrop, Germany to help optimize our production costs across our global network. This proposed cessation is subject to a consultation process with the applicable works council and union representatives at the facility, which the Company initiated on October 31, 2023. The Company intends for the closure, subject to the completion of such consultation process, to be completed in 2024.
As a result of this intended closure, the Company expects to record expenses, excluding employee termination costs, of approximately $110-125 million, consisting primarily of approximately $75-85 million of non-cash accelerated depreciation of fixed asset costs and approximately $35-40 million of other facility-related shutdown cash costs (primarily contract termination costs, tax costs and asset retirement obligations), with such cash outflows expected to occur during fiscal 2024.
In addition to these expenses, the Company expects to incur employee termination costs, which are subject to the above-referenced works council consultation. Until such consultation is concluded, the Company is unable to reasonably estimate the employee termination costs it will incur in connection with the intended actions. The Company will disclose the amount, type and timing of such costs promptly after they are determined.
The above charges are estimates; the actual charges may vary significantly based on various factors, including the outcome of the consultation process with the applicable works council and union representatives.
Forward-Looking Statements
The information set forth in this Current Report contains certain “forward-looking statements,” which include information concerning the Company’s plans, objectives, goals, expected future costs associated with the anticipated closure of the above-referenced polymerization units in Uentrop, Germany and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs 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 herein. 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. Certain of these risk factors are discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date the statement is made.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CELANESE CORPORATION | |||||||||||
| By: | /s/ MICHAEL R. SULLIVAN | ||||||||||
| Name: | Michael R. Sullivan | ||||||||||
| Title: | Vice President, Deputy General Counsel and Assistant Corporate Secretary | ||||||||||
| Date: | October 31, 2023 | ||||||||||
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