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For 2002, net sales for Acetyl Products declined by 11 % from € 2,155 million in 2001 to € 1,923 million
in 2002. This drop was largely the result of lower selling prices (-12 %) and unfavorable currency effects
(-3 %), partially offset by higher sales volumes (+4 %). Overall selling prices were lower year on year
as a result of the trend in raw material costs, primarily natural gas and ethylene. However, pricing rose
steadily throughout 2002 as a result of higher demand, temporarily tight supply conditions and a quarterly
sequential increase in raw material costs. The increase in demand and the temporary supply-demand imbalances
led to higher sales volumes of vinyl acetate monomer in the U.S. and Asia as well as for acetic acid
and polyvinyl alcohol, particularly in Asia.
Acetyl Products recorded € 3 million of income in special charges in 2002, compared with special
charges of € 125 million in 2001. The income of € 3 million resulted from favorable adjustments
to restructuring reserves recorded in 2001 and lower than expected severance costs.
EBITDA excluding special charges increased by € 44 million to € 252 million in 2002.
The operating profit of € 145 million in 2002 improved from an operating loss of € 73 million the
previous year. The main reasons were lower special charges and amortization expenses, higher sales volumes,
improved margins resulting from lower raw material and energy costs, as well as positive effects
of productivity and restructuring initiatives.
Integrated value chains are a common characteristic of the chemical industry. Like a tree with branches
and twigs, a variety of chemical products are produced with the basic molecules contained in just a
few raw materials. The Acetyls chain in particular plays a key role for Celanese. Acetic acid and vinyl
acetate monomer are the basic molecules, constituting the feedstock for many products in the chemical,
pharmaceutical and agricultural industry. Celanese started with acetic acid and vinyl acetate as roots
for the acetyl tree, then integrated forward and backward along the value chain. Today it is a
global market leader in a variety of products.
Celanese uses natural gas to synthesize methanol and acetic acid. Methanol is the primary raw material
for our acetic acid plants in Clear Lake and Singapore. It serves as the feedstock for producing
formaldehyde and polyols.
With an annual capacity of over 2 million metric tons, Celanese is a global market leader in acetic acid.
Internally we process acetic acid into key feedstocks for the chemical industry: acetic acid esters,
acetic acid anhydride and particularly vinyl acetate monomer (VAM). We are also a global market leader
in VAM, with six production sites and an annual capacity of around 1.2 million metric tons.
Until 2000, we sold our entire VAM production on the market. The acquisition of the polyvinyl alcohol
business from Air Products in 2000 and of the European emulsions and global emulsion powders business
from Clariant at the end of 2002 provides a captive market for some of our VAM. At the same time, we
are moving forward in the acetyl chain to reduce cyclicality and also to become much closer to the
ultimate consumer of our products.
Celanese expects to extend its Acetyls chain in the future. This will be primarily achieved through
cost and technology leadership, excellent marketing relationships and by further extending
the value chain.
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