U.S. 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): August 24, 2010
CELANESE CORPORATION
(Exact Name of Registrant as specified in its charter)
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| DELAWARE
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001-32410
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98-0420726 |
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(State or other jurisdiction
of incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.) |
1601 West LBJ Freeway, Dallas, Texas 75234-6034
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (972) 443-4000
Not Applicable
(Former name or former address, if changed since last report):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.05 Costs Associated with Exit or Disposal Activities
On August 24, 2010, Celanese Corporation (the “Company”) concluded that it will consolidate
its global acetate manufacturing capabilities with the closure of its acetate flake and tow
manufacturing operations in Spondon, Derby, United Kingdom. The closure is intended to strengthen
the Company’s competitive position and align future production capacities with anticipated industry
demand trends. Subject to finalization of operational improvement
projects, the Company plans to
retain its Clarifoil® acetate film manufacturing operations at the Spondon site.
As a result of the closure of its acetate flake and tow manufacturing operations at the
Spondon site, the Company expects to record future expense of
approximately $35 to $45 million,
consisting of approximately $20 million for personnel-related exit costs and approximately $20
million of other facility-related shutdown costs such as contract termination costs and accelerated
depreciation of fixed assets. The Company expects that substantially all of the exit costs (except
for accelerated depreciation of fixed assets of approximately $15 million) will result in future
cash expenditures. Cash outflows will occur over a 12-18 month
period. The above exit costs exclude site obligations which the
Company has previously accrued, as reflected in the Company's Form
10-Q for the period ended June 30, 2010.
In addition to exit-related costs, the Company anticipates making capital expenditures of
approximately $75 million in certain efficiency improvements, through 2011 and 2012, principally at
its Ocotlan, Mexico, and Narrows, Virginia facilities to optimize its global production network.
The information set forth in Item 2.05 contains certain “forward-looking statements,” which
include information concerning the Company’s plans, objectives, goals, expected future cost
associated with the closure of its acetate flake and tow manufacturing operations in Spondon,
Derby, United Kingdom 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,
2009 filed with the Securities and Exchange Commission on February 12, 2010. Any forward-looking
statement speaks only as of the date hereof, and the Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after the date hereof to reflect the
occurrence of anticipated or unanticipated events or circumstances.