Eastman, Lurgi and SK Chemicals Forge Global Alliance to License PTA Technology
FRANKFURT, Germany, KINGSPORT, Tenn. & SEOUL, Korea, Aug. 19, 2002 - Eastman Chemical Company today announced that it has expanded its alliance with Lurgi Oel Gas Chemie GMBH for the licensing of Eastman's proprietary terephthalic acid (EPTA) technology to include SK Chemicals. EPTA is Eastman's brand for terephthalic acid and is the primary intermediate used in the production of polyethylene terephthalate (PET) for both containers and fibers.
The agreement provides Lurgi a global exclusive for sub-licensing Eastman's EPTA, and combines the strengths of three world-class corporations: Eastman Chemical Company, Lurgi Oel Gas Chemie GmbH and SK Chemicals.
Eastman has manufactured EPTA for its use since 1969 and, through Voridian, a division of Eastman, today produces more than 450,000 metric tons of EPTA per year at locations in the United States and Europe. Eastman has produced PET since 1958 and today its Voridian division offers the broadest product line for containers in the industry.
Lurgi is widely acknowledged for its competence as an engineering, procurement, and construction company as well as a world-class technology provider.
SK Chemicals has produced PET resin since 1978. It is the first company of its kind in Korea. SK has manufactured its own brand of terephthalic acid (SK PTA) since 1989 through license from Eastman and has furthered the technology through continuous R&D efforts. Today SK produces 420,000 metric tons of SK PTA and 300,000 metric tons of PET. SK is the acknowledged leader in Korea in the manufacture of fibers using its SK PTA.
"The demand for terephthalic acid continues to grow at a fast pace and is particularly strong in Asia," said T. A. Smith, group vice president, polymers, Voridian. "This alliance positions us to demonstrate that our technology produces the lowest cost terephthalic acid in the marketplace today while delivering superior properties for the manufacture of fibers and containers. Our alliance provides a complete solution for our licensees."
Andreas Schilcher, executive vice-president of Lurgi Oel Gas Chemie GmbH, states, "This agreement with Eastman and SK reaffirms Lurgi's commitment to be an engineering company with total solutions for prospective clients. We can do engineering, procurement, project execution, construction, as well as economic feasibility studies, the conceptual design, product handling, financing and after-sales service of an EPTA plant along with the supporting technology license based on Eastman's process. Combined with our sister company, Lurgi Zimmer, we offer the total polyester solution starting with EPTA, and ending with polyester."
J.H. Hong, president, SK Chemicals said, "With the ever closing-in global economy of today, the partnership by the three major companies located on three continents, Asia, America and Europe offers strategic and logistic advantages in the market-driven PTA industry, especially in Asia. We are taking steps to build tomorrow's business framework in today's market."
Other news from the department business & finance
Get the chemical industry in your inbox
From now on, don't miss a thing: Our newsletter for the chemical industry, analytics, lab technology and process engineering brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
