Industry News

Eastman to Sell Spanish Plant

Published on 2007-02-27. Author : SpecialChem

KINGSPORT, Tenn. -- Eastman Chemical Company (NYSE:EMN) announced it has entered into an agreement for the sale of Eastman Chemical Iberia, S.A., located in San Roque, Spain, to La Seda de Barcelona, S.A., located in Barcelona, Spain. The sale includes Eastman's PET polymers manufacturing assets in Spain and the related polyester resins business. The sale is subject to competition authority approvals in Spain. Terms of the transaction, which is expected to close during second quarter 2007, were not disclosed.

"We announced at our November 2006 Investor Day that we would be taking strategic actions to address our non-integrated PET polymers assets outside the United States," said Gregory O. Nelson, Eastman executive vice president and polymers business group head. "This agreement is a major step forward as we implement our strategy to improve the overall financial performance of our PET polymers business."

The sale of the San Roque site could change the previously reported decision to permanently shut down the site. It does not impact Eastman's previously announced decision to shut down its CHDM manufacturing assets at the site. The company still expects to record asset impairments and restructuring charges related to the San Roque site in first quarter of 2007.

About La Seda

The Group's principal activities are the production and distribution of artificial and synthetic fabrics and yarn such as polyester, polythene and viscose. It is also involved in pharmaceutical fields such as the production of oxyacetylene and its derivatives. The Spanish, Italian, German and French markets are some of its main target markets, but it is also present in the markets of the Maghreb, Turkey and South America.

About Eastman

Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is the world's largest producer of PET polymers for packaging; and is a major supplier of cellulose acetate fibers. As a Responsible Care® company, Eastman is committed to achieving the highest standards of health, safety, environmental and security performance. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2006 sales of $7.5 billion and approximately 11,000 employees.

Source: Eastman Chemical Company

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