Celanese sees auto industry improving from third quarter

U.
S.
auto production will begin to pick up in the second half of the year as supplies of resins and microchips improve, Celanese CEO Lori Ryerkerk said on Friday
.

Car production has been hampered this year mainly because of a shortage of microchips, but the coronavirus pandemic has also led to a surge in demand for computers and other products that rely on chips
.

Ryerkerk said on the company's second-quarter earnings call that vehicle production fell sharply in the U.
S.
and Germany, the two largest markets for the company's engineered materials
.

The amount of material Celanese sold to the auto industry fell 8 percent quarter-on-quarter, but Ryerkerk said that was less than the moderate decline in auto manufacturing rates in North America and Germany
.

Several resins, including PBT and nylon, also experienced industry-wide shortages during the quarter
.

Due to chip shortages, automakers are focusing on producing high-end models, and Celanese is very specialized in this area
.

Vehicle production should start to pick up in the third and fourth quarters, she said
.

While the company's engineered materials business typically sees a dip in the fourth quarter, that won't be the case this year
.
She expects auto production to accelerate as supplies of raw materials and chips increase
.

Meanwhile, Celanese is focusing more on the electric vehicle segment of the auto industry
.
Ryerkerk pointed out that most new car sales in the EU are currently electric vehicles
.

Electric vehicles have been a focus for Celanese for the past two years, as the company sees more opportunities for EV market share growth than conventional vehicles
.