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Policy

Celanese sues Saudi firm over secrets

November 27, 2006 | A version of this story appeared in Volume 84, Issue 48

Celanese Corp. has filed a suit against Saudi International Petrochemical (Sipchem) and two of its affiliates to prevent them from using Celanese know-how to construct and operate vinyl acetate and acetic acid plants in Al Jubail, Saudi Arabia. The suit, filed in Harris County, Texas, district court, alleges that Sipchem recruited former and current Celanese employees, hired engineering and construction firms, and engaged other suppliers "with intimate knowledge of Celanese's trade secrets." For its part, Sipchem calls the claims "baseless and without merit." Sipchem adds that the acetyl complex has been designed "using technologies properly licensed from Eastman Chemical and DuPont." Construction on the $1.1 billion complex got under way in September.

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