China: Acetic Acid Celanese and Chengzhi Sign LOI for Ethanol Production Unit
Celanese has signed a Letter of Intent (LOI) with Chengzhi to further the development of acetic acid-based ethanol as a clean energy source in China.
Dallas/USA; Beijing/China — From 2014 to 2017, Celanese operated a 275,000 metric ton per year industrial ethanol unit at the Nanjing, China Chemical Industrial Park. This ethanol unit used the company's TCX technology to produce ethanol and historically sourced feedstock from the company’s acetic acid plant co-located at its Nanjing manufacturing facility.
Pursuant to the LOI, the speciality materials company would sell its Nanjing ethanol unit to Chengzhi, along with all related assets, including equipment, storage tanks and pipelines as well as all necessary land rights and permits. Additionally, the company would contribute its TCX technology, along with all associated patents, know-how and trade secrets, into a newly formed joint venture. Through this joint venture the two companies would collaborate to further strengthen this technology and promote additional opportunities for utilizing the TCX ethanol process technology within the People's Republic of China.
The LOI is subject to the parties reaching definitive agreements. The two companies are also committed to working together to implement a smooth transition leading to a restart of the Nanjing ethanol unit as soon as possible, likely in 2019. Financial terms and conditions are not being disclosed at this time.