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29 Nov 2006 - Germany
Celanese reaches settlement with Frankfurt airport
Celanese Corporation, a global hybrid, integrated chemical company, and its engineered polymers subsidiary, Ticona GmbH, have reached a settlement with the Frankfurt, Germany, Airport (Fraport AG) to relocate Ticona’s Kelsterbach, Germany, business, resolving several years of legal disputes related to the planned Frankfurt airport expansion.
Over a five-year period, Fraport will pay Ticona a total of €650 million for the costs associated with the transition of the business from the current location and the closure of the Kelsterbach plant.
The terms of the settlement will allow Ticona adequate time and resources to select a site, build new production facilities and transition business activities within Germany to a new location by mid-2011. These activities are expected to be completed without interruption to customer supply.
“This cost-neutral and tax-neutral settlement with Fraport satisfies our commitment to customers and benefits shareholders, investors and employees,” said Lyndon Cole, executive vice president of Celanese and president of Ticona.
“The settlement we’ve agreed upon ensures continuous service to our markets at the highest levels at all times,” Cole said. “This solution allows all parties to move forward and Ticona to successfully maintain and expand our position as a global leader in high-performance polymers.”
The settlement is subject to the conclusion of final agreements and approval at Fraport’s annual shareholders meeting in May 2007.
Ticona is currently investigating potential sites for the future production location within Germany. The relocation will affect production and administrative facilities and personnel.
Source : Celanese
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