Celanese(CE) - 2024 Q4 - Annual Report

Acquisition and Joint Ventures - Celanese completed the acquisition of DuPont's Mobility & Materials business for a purchase price of $11.0 billion, enhancing its portfolio in engineering thermoplastics and elastomers [29]. - In September 2023, Celanese formed a food ingredients joint venture with Mitsui, retaining a 30$503 million [30]. - The company formed a food ingredients joint venture named Nutrinova with Mitsui in September 2023 [58]. - The company has a 30% ownership in Nutrinova Netherlands B.V., which produces food safety and shelf-life improvement products [64]. Business Segments and Operations - Celanese operates through two main business segments: Engineered Materials and the Acetyl Chain, focusing on high-performance engineered polymers and acetyl products [19]. - The Engineered Materials segment leverages a project pipeline model to commercialize new projects rapidly, driven by customer engagement and market trends [22][23]. - The Acetyl Chain segment includes acetic acid, VAM, acetic anhydride, and acetate esters, serving diverse applications in paints, adhesives, and pharmaceuticals [39]. - The company has a global production network with sites in Belgium, Canada, China, Germany, Mexico, the Netherlands, Singapore, Sweden, Switzerland, and the U.S., positioning it as a leader in the acetyls market [41]. - The emulsion polymers business produces vinyl acetate-based emulsions for applications such as paints, adhesives, and textiles, with high demand in Europe and Asia [49]. - The EVA polymers business is a leading North American manufacturer of specialty EVA resins, used in flexible packaging films and automotive parts [41]. Financial Performance and Investments - In 2024, the equity method strategic affiliates generated combined sales of $2.2 billion, resulting in$149 million of equity in net earnings and $130 million of dividends recorded by the company [61]. - The company received cash dividends of$127 million, $125 million, and$132 million from its Acetyl Chain ventures in 2024, 2023, and 2022, respectively [68]. - The company is focused on developing products to help customers meet sustainability goals, including those for building materials and electric vehicles [77]. - The company has invested in projects to increase energy efficiency and renewable energy usage, including a carbon dioxide capture project in Texas [76]. Workforce and Safety - The company employs 12,163 people worldwide and has 56 global production facilities, with operations primarily in North America, Europe, and Asia [18]. - As of December 31, 2024, the total global workforce consists of 12,163 employees, with 4,948 in North America, 4,205 in Europe, 2,889 in Asia, and 121 in the Rest of the World [81]. - The attrition rate for global employees is 9.1%, with women at 9.3% and people of color in the U.S. at 10.8% [82]. - In 2024, the company achieved a Total Recordable Incident Rate (TRIR) of 0.15 and a Lost Time Incident Rate (LTIR) of 0.02, reflecting world-class safety performance [86]. Market Trends and Challenges - The company’s broad marketplace presence reflects its understanding of global trends, including the demand for lightweight vehicles and improved health and wellness solutions [24]. - Approximately 31% of net sales in 2024 originated from Europe, which historically accounts for about one-third of annual net sales [96]. - The company has significant operations in China and other Asian countries, with potential risks of slowing growth impacting financial results [95]. - The company has experienced supply disruptions and increased costs of inputs, which have affected operating costs and may continue to do so [100]. Risks and Regulatory Environment - The company is exposed to credit risks associated with suppliers and customers, particularly in cyclical industries, which may adversely affect cash flow and profitability [119]. - The company is subject to evolving environmental regulations that may increase operational costs and impact demand for its products [139]. - The company anticipates that the EPA will develop a draft risk management plan for formaldehyde, which could affect product classification and demand [140]. - The company is involved in various legal and regulatory proceedings that could materially affect its business and financial condition [150]. Financial Strategy and Debt Management - As of December 31, 2024, the company's total debt was $12.6 billion, with plans to continue borrowing additional debt if necessary [165]. - The company announced an intent to reduce its quarterly dividend by approximately 95$1.5 billion in the Engineered Materials segment as of December 31, 2024, with goodwill in that segment totaling $5.0 billion [287]. - An interim impairment test of indefinite-lived intangible assets resulted in a non-cash impairment loss of$83 million, primarily related to certain trade names in the Engineered Materials segment [288]. - The company has recognized aggregate non-cash impairment losses of $117 million for the year ended December 31, 2024, primarily related to certain trade names in the Engineered Materials segment [118]. Cybersecurity and Operational Risks - Cybersecurity threats pose significant risks to the company's information and operational technology systems, especially as it integrates the M&M Business's technology environment [126]. - Disruptions in production at manufacturing facilities or suppliers could materially affect the company's ability to meet customer demands [104]. - The company maintains insurance coverage for operational risks, but acknowledges that it may not fully cover all potential liabilities, including environmental remediation [121].