A Report On Celanese Corporation

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Celanese Introduction: Celanese Corporation is one of the fortune 500 firms in the U.S. It is specialized in Chemicals and advanced materials. Celanese 's operations are primarily located in North America, Europe, and Asia. In 2003, Blackstone Corporation was evaluating an acquisition of Celanese Corporation in order to expand an increase the market value of Blackstone Corporation. Operating Assumptions As expressed on the simulation website, the commodity chemical industry is cyclical by default. Manufactures, automobiles, agriculture and housing rely on chemical producers such as Celanese. Sales depend on the basic economic rule of supply and demand. If the demand is decreasing due to oversupplying products, the price will fall dramatically. Predicting sales growth in the chemical industry is not an easy task to do. However, the original estimation of sales growth from 2004 to 2008 were 0.7%, 3.5%, 0.7%, 0.2% and 0.0% respectively. The simulation provided the opportunity of hiring a consultant for estimating the growth of the company. Due to the limited budget that Celanese had, I decided to use it in estimating sales growth and capital expenditures (CAPEX). The consultant’s estimation of sales growth from 2004 to 2008 were 0.9%, 3.8%, 6%, 2.5% and 0.5% respectively. The main reason behind the difference between the original estimation and the consultant estimation is the large capacity that the industry could provide. In addition, the increasing rates of demand in

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