Celanese Corp. confirmed Tuesday that it will permanently cut production in half, at its acetate tow production plant in Lanaken, Belgium, following continued declines in global demand. The chemicals company said it expects to record costs in the range of $35 million to $40 million for the restructuring. The decision follows a consultation with employee representatives, and the development of a plan to minimize the effects of the production cuts on employees. "The declines in geographic demand, anticipated industry consumption patterns, and the site's high costs led us to proceed with the proposed 50 percent capacity reduction at the Lanaken facility," said Scott Sutton, president of Celanese's materials solutions business. The stock, which was still inactive in premarket trade, has gained 18% year to date, while the S&P 500 has tacked on 1%.
Copyright © 2015 MarketWatch, Inc.