Eastman Joint Venture Plant in China Starts Operations

11-24-2004: Eastman Chemical Company announced that Qilu Eastman Specialty Chemical Ltd. (QESCL) has begun operations in Zibo, Shandong Province, People's Republic of China. QESCL is a joint venture between Sinopec Qilu Petrochemical Company and Eastman Chemical Ltd., a wholly owned subsidiary of Eastman Chemical Company.

The new plant produces Texanol ester alcohol and TXIB plasticizer. The plant is able to meet the total demand of Eastman's current customers for these products in China. Construction of the plant began in September 2003.

"The joint venture enhances Eastman's global capacity for Texanol ester alcohol and TXIB plasticizer. We expect a healthy growth in our market segment for these products and have an optimistic outlook for the future of the plant," said Damon Warmack, Asia Pacific region president for the company's Eastman Division.

Eastman expects the synergy established with Sinopec Qilu will provide long-term business growth opportunities in China, and the Asia Pacific region in general, with a stable and efficient supply of raw material from its joint venture partner.

"The plant is identical, both in design and operation process, with our plant in Singapore and is tied into Eastman's global operation," said Brian Yoon, general manager, QESCL. "That means our customers will get the same consistent, high-quality products that they have come to expect from Eastman."