Plant Relocation

In November 2006, the Company finalized a settlement agreement with the Frankfurt, Germany Airport (“Fraport”) to relocate the Kelsterbach, Germany Ticona operations resolving several years of legal disputes related to the planned Fraport expansion. As a result of the settlement, the Company will transition Ticona’s operations from Kelsterbach to the Frankfurt Hoechst Industrial Park in the Rhine Main area in Germany. Under the original agreement, Fraport agreed to pay the Company a total of €670 million over a five-year period to offset costs associated with the transition of the operations from its current location and the closure of the Kelsterbach plant. The Company subsequently decided to expand the scope of the new production facilities.

On March 30, 2011, the Company provided notice to Fraport indicating the Company will cease operations at the Kelsterbach, Germany facility by July 31, 2011. Accordingly, the Company received its final payment from Fraport of €110 million during the three months ended June 30, 2011. Per the terms of the agreement with Fraport, the Company ceased POM operations at the Kelsterbach, Germany Ticona facility prior to July 31, 2011.

On September 26, 2011, the Company announced the opening of its new polyacetal (“POM”) production facility in Frankfurt Hoechst Industrial Park, Germany.

A summary of the financial statement impact associated with the Ticona Kelsterbach plant relocation is as follows:



	Nine Months Ended September 30,		Total From Inception Through
	2011	2010	September 30, 2011
	(In $ millions)
Deferred proceeds ⁽¹⁾	158	—	907
Costs expensed	43	17	102
Costs capitalized ⁽²⁾	137	202	1,058
Lease buyout	—	—	22
Employee termination benefits	5	—	5

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⁽¹⁾	Included in noncurrent Other liabilities in the unaudited consolidated balance sheets.


⁽²⁾	Includes a decrease in accrued capital expenditures of $37 million and $17 million for the nine months ended September 30, 2011 and 2010, respectively.