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Kingsport, Tenn., USA, Mar 26, 2015 - (ACN Newswire) - Eastman Chemical Company (NYSE:EMN) today announced it has decided to close its Workington, UK, acetate tow manufacturing site. Production at the site will cease in April, and site closure is expected to be completed in the third quarter of 2015. As previously announced, Eastman entered the consultation process with employee and union representatives in response to changes in global market demand for acetate tow. The Workington site has 24,000 metric tons of acetate tow manufacturing capacity. Projected savings from the closure are annual operating costs of approximately $20 million and a total of approximately $20 million of infrastructure capital expenditures planned for the next five years.
"With changes in global market demand and recent and announced global acetate tow manufacturing capacity additions, we need less capacity to supply our customers," said Linda Hensley, vice president and general manager of the Fibers segment. "We have been working with our customers throughout this process and remain committed to reliably supplying them with top quality products."
Eastman manufactures Estron(TM) acetate tow, which is a fibrous material downstream customers use to manufacture cigarette filter rods. Eastman will continue to manufacture acetate tow at its facilities in Kingsport, Tenn., and Ulsan, Korea. In addition, Eastman has a joint venture with China National Tobacco Company in Heifei, China.
"This was a difficult decision because it impacts team members who have made valuable contributions to our company," Hensley added. "Eastman's decision to close the Workington plant is not a reflection of the performance of the employees who work at the site and we will be doing all we can to support employees to ensure they are treated with the respect they deserve."
This action will result in shut down costs and restructuring charges totaling approximately $100 million primarily in the first half of 2015, approximately $80 million of which are non-cash.
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 2014 revenues of approximately $9.5 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.
Contacts:
Media: Kristin Parker
+1-423-229-2526 / kristin@eastman.com
Investors: Greg Riddle
+1-212-835-1620 / griddle@eastman.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
Topic: Press release summary
Source: Eastman Chemical Company
http://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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