Celanese to cease operations at Lanaken facility, layoff 160 employees (updated)

Celanese

28/10/2025 12:52

Adds shares and details on Micromax divestiture in paragraphs 8-11

Oct 28 (Reuters) - Chemical firm Celanese CE.N said on Tuesday it plans to cease operations at its acetate tow facility at Lanaken, Belgium, during the second half of 2026 and lay off about 160 employees at the site.

The chemical industry faces weak demand and high input costs, particularly in Europe, where a challenging regulatory environment has prompted companies to rethink their strategies.

China's swift production ramp-up of ethylene, a building block of many chemicals, is expected to further drive down global prices and weigh on U.S. and European manufacturers.

Earlier this year, peer LyondellBasell LYB.N and Covestro decided to permanently close some of their units at the Maasvlakte site in the Netherlands.

Celanese said acetate tow, used in cigarette filters and textile production, has faced challenges such as declining demand and growing uncertainty in the regulatory environment.

The company said it expects to record expenses, excluding employee termination costs, between $70 million and $90 million as a result of the intended closure.

"The intended closure is also influenced by the need to optimize the company's cost structure, particularly in light of the comparably high energy and operating costs associated with the Lanaken site," the company said in a statement.

Celanese also said on Tuesday it would spin off its Micromax business to Element Solutions ESI.N for about $500 million in cash.

The transaction is expected to close in the first quarter of 2026.

Shares of the company rose nearly 1% in extended trading after closing down roughly 6%.

Earlier this year, the chemical maker had revealed plans to spin off Micromax in order to generate cash and cut debt. The materials from the segment are used in applications, including navigation and defense, medical monitoring and advanced circuit board components.

 (Reporting by Tanay Dhumal and Dharna Bafna in Bengaluru; Editing by Leroy Leo and Alan Barona)

 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))