Part of my work from 2 weekends ago, a bit that I don't think I posted on here, but very interesting ....
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Not many companies sell to the Chinese State Tobacco Monopoly, as well as the rest of the world, and they have big manufacturing facilities.
"Celanese is the world's largest manufacturer of cellulose acetate filament and tow. Both products are derived from cellulose and acetic acid; the filament is made into fabrics, the tow is processed into cigarette filters and other products. Celanese's acetate business has a strong foundation in the size and efficiency of its production plants as well as in its leading technology. A significant factor for its success is its global market presence that supports partnerships with leading customers worldwide.
With acetate manufacturing in the NAFTA region, Europe, and China, Celanese can meet the needs of large regional and international customers. China, where the company has joint ventures to manufacture cigarette filter tow, represents 27 % of the global market for this product. Based on its presence and experience in operating in the Pacific Rim, Celanese Acetate has now become the biggest supplier of acetate tow in that region. This position depends on imports from our North American production sites, as well as its joint ventures in Kumming, Nantong and Zhuhai.
The customers for filter products in China are the companies which comprise the State Tobacco Monopoly (STMA), the world's biggest cigarette manufacturer.""
http://www.celanese.com/
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Below is another interesting bit about Celanese's
rising polymer prices from their news section.
Ticona increases prices for polymers
Further rise in raw materials, energy and freight costs
Kelsterbach, September 21, 2005 Effective from October 17, 2005,
Ticona, the technical polymers business of Celanese Corporation, is increasing the prices of polyacetal, polyester products (PET, PBT, blends, and elastomers), and long-glass-fiber-reinforced thermoplastics. The company is reacting to the sharp rise of raw materials prices on the world market within the past few weeks, as well as the further shortage of preliminary products. Amongst other factors, the continuously high costs for fuel have also led to an increase in freight rates.
Over the past few years, the price of some intermediates and raw materials has more than
doubled, and just in recent months there has been yet another
considerable increase. As a consequence of the increasing prices of raw materials the costs for transport are also increasing globally. "Energy costs continuously climb, too", explains Michael Oberste-Wilms, Head of Sales Europe at Ticona.
"Within the past few months we have been discussing with many clients and suppliers the sustainability of higher raw materials and energy costs, which have increased steadily since end of 2004. Today, we have to accept that we are far away from normalisation. Despite great efforts,
we are no longer able to compensate for the increasing pressure on costs by an increase in productivity alone."
With effect from October 17, 2005 the prices are being raised as follows:
Hostaform (POM) 150 /t
Celanex (PBT) 200 /t
Impet (PET) 200 /t
Vandar (thermoplastic polyester blends) 200 /t
Riteflex (TPE-E) 200 /t
Celstran (LFT) 150 /t
Compel (LFT) 150 /t