Celanese Corp. has expanded its distribution network to include Amco Polymers, Channel Prime Alliance and Entec Polymers.
Those three firms will distribute engineering resins for Dallas-based Celanese in the U.S., Canada and Mexico. Amco, Channel Prime Alliance and Entec all are units of Ravago Group.
Formerra LLC will continue to distribute resins for Celanese in the U.S., Canada and Mexico. Celanese also will continue to work with CCC Plastics as a distributor in Canada and with Resinas Colores y Compuestos as a distributor in Mexico.
In a news release, Celanese officials said that on Jan. 2, the firm "will transition from an exclusive product distribution model to a full-portfolio, multidistribution model in the Americas and Europe."
They added that the shift "is intended to enhance customer satisfaction and convenience" by providing a broader range of distributors and locations for materials sourcing. They also said that the selected distributors "are well-qualified to provide technical support and logistics solutions" for the company's specialty Engineered Materials portfolio.
"Transitioning to a multidistributor model will open up new opportunities for our customers, allowing for greater flexibility and convenience in sourcing our materials," EM Senior Vice President Tom Kelly said. "This shift aligns perfectly with our dedication to delivering exceptional customer service and ensuring that our customers can easily purchase the products they need right when they need them."
Celanese continues to integrate the majority of DuPont Co.'s Mobility and Materials business, which it acquired in an $11 billion all-cash deal in early 2022. The acquired business had annual sales of about $3.5 billion. The deal included Zytel and Rynite nylon, Crastin polybutylene terephthalate, and Vamac and Hytrel elastomers, as well as other materials.
The DuPont deal included 29 global manufacturing sites and an intellectual property portfolio of about 850 patents. The acquired business employs around 5,000 in manufacturing, technical and commercial roles.
Prior to the acquisition, Formerra had been a major distributor of the materials made by the DuPont units sold to Celanese. Ravago had distributed for Celanese before the deal.
"We benefit in a big way from the new distribution strategy," Celanese Americas Commercial Vice President Shelli Lee said in a Dec. 19 video interview. "Our portfolio has a lot of power and this will give us the ability to deliver multiple solutions to our customers. It's a tremendous opportunity for us." She added that Celanese has no current plans to add to its distribution lineup.
Market sources said the new Celanese model could have a sizable impact on Romeoville, Ill.-based Formerra. The DuPont product line was one of Formerra's largest suppliers, based on sales in dollars and volume in pounds sold, according to market sources.
In a statement to Plastics News, Formerra CEO Cathy Dodd said that her firm "continues to have a robust, nonexclusive supplier relationship with both DuPont and Celanese."
Regarding the Celanese distribution expansion, Dodd said that Formerra "is honored to continue to serve as a valued distribution partner for Celanese Engineered Materials across North America."
"This collaboration is a testament to our proven track record in the health care, consumer, industrial and mobility markets," Dodd said. "Our deep understanding of these sectors, coupled with our commitment to serving customers, positions us uniquely to bring the Celanese portfolio to a wider audience with precision and expertise."
Formerra is the former Avient Corp. resin distribution unit that was acquired by private equity firm HIG Capital for $950 million in late 2022. The business is one of North America's largest resin distributors. Formerra distributes resin and compounds for more than 20 suppliers, including Dow Inc., BASF and LyondellBasell Industries.
Ravago, based in Luxembourg with a U.S. headquarters in Orlando, Fla., distributes, resells, compounds and recycles plastic raw materials at more than 325 locations across more than 55 countries worldwide. It employs 8,000 at 45 manufacturing facilities, including 19 recycling and compounding plants in North America, Europe, Asia and Africa with a combined annual capacity of about 1.7 billion pounds.
Earlier this year, Ravago added to its distribution holdings when it acquired a majority stake in M. Holland Co., a major resin distributor based in Northbrook, Ill. Also in 2023, Ravago partnered with solid waste management giant Republic Services Inc. of Phoenix to form Blue Polymers LLC, a joint venture that will build plants that generate 100 percent post-consumer resins.
For full year 2022, Celanese posted sales of $9.7 billion. Sales at the firm's EM unit — including the world's largest acetals business — came in at $4 billion.