Recycled Polymers Offer Sustainable Alternative for Automakers

Q: How has the company worked toward shaping the future of mobility?

A: Celanese possesses a broad portfolio of products that has been strengthened through the acquisition of several companies. We focus on advanced driver assistance systems (ADAS) and hybrid and electric vehicles. We also develop a variety of materials, such as those used in sensors. However, we remain committed to traditional mobility and to the goal of reducing weight to improve efficiency and comfort in combustion, electric and hybrid systems, which translates into cost savings for consumers. Although the industry's transition to electric vehicles is progressing, the adoption of these vehicles has not been as fast as initially anticipated. 

Q: How has Celanese’s acquisition of the majority of the DuPont’s Mobility & Materials (M&M) business impacted the company’s portfolio?

A: It is an interesting change because Celanese’s turnover had stood at about US$7 billion but with this acquisition, it has climbed to US$13 billion. Additionally, there was a restructuring and Engineered Materials was the business unit most impacted. It now targets the automotive, electric/electronics, medical and information technology industries. About 70% of our sales are from the automotive industry and our polymer portfolio is the most complete in the sector. The most important factor is that customer service was not affected by all these changes.

Q: What role does Mexico play in the company’s transformation?

A: Mexico is Celanese's largest market. Brazil is also a sizable market but it is mostly a domestic consumer market. Meanwhile, Argentina's market is growing rapidly but it is constrained by the country’s social and economic context. The COVID-19 pandemic has emphasized the significance of localization and the hazards involved in manufacturing in the Asia-Pacific region. Mexico's position in the industry is fascinating, as the country not only produces 4.3 million light vehicles but also exports auto parts to the US worth US$110 billion. Daily, we receive inquiries from companies interested in quotes on materials because they have received requests from players like Tesla and other major key companies seeking for new solutions.

Q: How is the company implementing sustainability in its operations?

A: As a company, we aim to reduce our emissions by 30%, energy consumption by 15% and water consumption by 10% by 2030. As a business unit, we have a strong portfolio of renewable polymers that come from sustainable sources, rather than non-renewable sources. These sustainable polymers are more expensive due to lower volumes but we are working to make them more accessible to the industry. We have also received requests from many automakers for polymers made with recycled materials. Moreover, we advise our customers that they can produce automotive parts using a percentage of recycled polymer without affecting their performance, chemical or mechanical characteristics. This approach also contributes to sustainability. 

Q: How have supply chain disruptions in the sector changed the way in which the company operates?

A: During the pandemic, polymer producers worldwide faced the inability to transport goods from Asia-Pacific to the Americas and the EU and vice versa. Additionally, transportation costs for goods increased while port availability decreased. However, Celanese benefited from its broad global presence, which allowed us to use different sources for our customers and to diversify our operations. With over 50 plants worldwide, we were able to optimize our operations and relocate to handle pandemic-related restrictions and assist our customers in managing their demands. As a chemical industry company, this was crucial for our resilience during the pandemic.

This is not an easy industry but there is always an opportunity to learn. After more than 27 years in the automotive industry, I have learned the importance of empathy in understanding our people because it is the only way we can help our team grow and maximize the company's results.

Celanese is a global chemical leader, producing specialized material solutions used across most major industries and consumer applications.