Celanese Corporation (NYSE: CE), a global hybrid chemical company, today announced the sale of its Pampa, Texas, facility to international investment and advisory firm Babcock & Brown (ASX: BNB), as part of Celanese’s plan to pursue strategic alternatives for the site. Both companies will co-exist on the site for a period of time, as Celanese’s chemical production and other operations will continue until at least early 2009.
Babcock & Brown, a global investment firm with significant power generation and electric transmission and distribution holdings, intends to develop the facility for commercial power generation.
“We’re pleased to reach an economically viable solution for our Pampa site that maximizes future employment possibilities,” said Celanese Chairman and CEO Dave Weidman. “The Pampa site has served Celanese customers well over the past several decades and will continue to be a resource over the next few years. We will work to ensure a smooth transition for our employees, customers and suppliers. We believe the assets at this facility can play a key role in future energy supply for the state of Texas.”
“We are excited about the opportunity to convert the world-class infrastructure at the Celanese facility into a new Pampa Energy Center, potentially including IGCC (Integrated Gasification Combined Cycle) electric generation as well as renewable energy,” said David Parquet of Babcock & Brown. “With transmission access available to reach Texas’ vast ERCOT market, we intend to develop the site to its full potential, including up to 800 megawatts of coal-based electric generation, to complement our planned 1,000 megawatts of wind generation in the central Panhandle. New transmission infrastructure is essential to allow all Texans to access the world-class wind resources of the Panhandle, and to allow the existing Celanese infrastructure to help maintain adequate electric generation capacity reserves to meet growing demand.”
In 2006, Celanese joined with Babcock & Brown and several other companies to support the proposed “Panhandle Loop” project, which would connect wind and conventional electricity generation in the Texas Panhandle with the ERCOT (Electric Reliability Council of Texas) power grid. On July 20, 2007, the Texas Public Utility Commission (PUC) voted to bring ERCOT access to the Panhandle Region.
Celanese began operations at the Pampa site in 1952. Today, it produces primarily acetic acid and acetic anhydride with approximately 250 employees.
Financial details of the transaction were not disclosed.
Seale & Associates, Inc. advised Celanese on the transaction.
About Celanese
As a global leader in the chemicals industry, Celanese Corporation (NYSE: CE) makes products essential to everyday living. Our products, found in consumer and industrial applications, are manufactured in North America, Europe and Asia. Net sales totaled $6.7 billion in 2006, with approximately 60% generated outside of North America. Known for operational excellence and execution of its business strategies, Celanese delivers value to customers around the globe with innovations and best-in-class technologies. Based in Dallas, Texas, the company employs approximately 8,900 employees worldwide. For further information about Celanese, please visit www.celanese.com.
About Babcock & Brown
Babcock & Brown is an international investment and advisory firm that operates from 29 offices across Australia, the United States, Europe, Asia, United Arab Emirates and Africa and has in excess of 1,000 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance. Babcock & Brown's Infrastructure Division operates across a diversified range of assets including renewable fuels, renewable power, conventional power, transportation, energy distribution and transmission, and Public Private Partnerships. At December 31, 2006, Babcock & Brown’s total funds and assets under management were more than US$44 billion.
Forward-Looking Statements
This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information.When used in this release, the words “outlook,”“forecast,” “estimates,”“expects,” “anticipates,”“projects,” “plans,”“intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. 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 in this release. 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 in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Contacts:
Media Relations:
Dave Jackson,
972-443-8074
david.jackson@celanese.com
or
Investor
Relations:
J.T. Jones, 972-443-3091
jtjones@celanese.com
or
Babcock
& Brown
Matt Dallas, 212-796-3918
matt.dallas@babcockbrown.com
