CALHOUN COUNTY, S.C., October 15, 2007 — Eastman Chemical Company today said it is continuing capital investments of approximately $100 million to transform and reinvest in its Calhoun County, S.C., facility.
Supporting previously announced strategic growth efforts for both specialty copolyesters and polyethylene teraphthalate (PET) product lines, the company disclosed this expenditure encompassing a number of projects. Projects include the conversion of an existing polymer line to add specialty copolyester production to the site, transformation from dimethyl teraphthalate (DMT) to purified terephthalic acid (PTA) production to create an integrated PTA-based polymer site, and infrastructure investments. Also included are projects aimed at increasing the capacity of the site's IntegRex™ technology polymer production by at least 50%. The projects are currently underway and expected to be completed in 2008.
"These investments will be used for a variety of projects including the important work of upgrading our infrastructure," said Gregory O. Nelson, executive vice president and head of Eastman's polymers business group. "They will also allow us to continue the transformation of our South Carolina site through the expansion of specialty copolyester manufacturing there as well as fuel strategic growth for the company by extending the use of our proprietary IntegRex™ technology."
Commenting on the importance of these investments to the company's specialty copolyesters business in particular, Dante Rutstrom, vice president and general manager of Eastman's specialty plastics business, said, "Eastman is dedicated to efficiently serving the needs of our customers in the global copolyester market. The additional capacity and flexibility the expansions will give us are a clear demonstration of our commitment to this business and to growing with our specialty copolyester customers."
Nelson noted the site began operation in 1967 as a manufacturer of polyester textile fibers. During the early 80's, the site became one of the earliest producers of PET resin for carbonated soft drink bottles. In the late 80's, the site ceased fiber production and was fully converted to the manufacture of PET resin for packaging applications. The site remains one of the world's largest PET resin manufacturing facilities.
"It's appropriate that we're beginning these projects during the 40th anniversary of our South Carolina Operations. As we're celebrating the site's history, these investments are about its future," Nelson added.
Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is one of the world’s largest producers 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. For more information about Eastman and its products, visit www.eastman.com.