Kingsport, Tenn., USA, May 20, 2016 - (ACN Newswire) - Eastman Chemical Company (NYSE:EMN) today announced it has entered into a definitive agreement with Solvay to sell its interest in the Kingsport, Tennessee, cellulose acetate flake joint venture named Primester. Eastman and Solvay are currently equal partners in the joint venture. The transaction allows Eastman to eliminate costs associated with the excess cellulose acetate flake capacity of the joint venture.
"Last fall Eastman completed a small capital investment to increase flake capacity at our Tennessee Eastman manufacturing site in Kingsport," said Scott Ballard, vice president and general manager of Eastman's Fibers segment. "With this expansion and last year's shut down of our Workington, UK acetate tow site, it is no longer necessary for Eastman to support the fixed costs of Primester to have sufficient cellulose acetate flake capacity to reliably supply all of our tow capacity around the world, including the entirety of our Korea and China joint ventures."
Eastman will continue to supply certain services, utilities and raw materials to Primester for Solvay's operation of the former joint venture assets. The sale is subject to satisfaction of customary closing conditions and is expected to close in second quarter 2016. Terms of the sale were not disclosed.
Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2015 revenues of approximately $9.6 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 15,000 people around the world. For more information, visit www.eastman.com.
Media: Kristin Parker
+1-423-229-2526 / firstname.lastname@example.org
Investors: Greg Riddle
+1-212-835-1620 / email@example.com
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eastman Chemical Company via Globenewswire
May 20, 2016 06:00 HKT/SGT
Topic: Press release summary
From the Asia Corporate News Network
Copyright © 2017 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.