Eastman and SK to Produce Tow in Korea

Source from:  Tobacco Reporter 12/22/2008

Dec 19, 2008-Eastman Chemical Co. and SK Chemicals Co. have signed a joint venture agreement to form a company that will construct a cellulose acetate tow factory in South Korea. The company will be named Eastman Fibers Korea. As part of the agreement, SK will transfer its acetate fibers technology to Eastman. Eastman will have 80 percent ownership and will operate the facility. SK will be responsible for the construction of the facility, which will be built adjacent to an existing SK Chemicals manufacturing site in Ulsan. Construction is expected to begin in the first quarter of 2009 and should be completed during the second quarter of 2010. The factory's annual capacity is expected to be approximately 27,000 metric tons. "We continue to see significant demand growth for cellulose acetate tow in Asia. This strategic joint venture will enable us to maintain our market growth and meet customer demands in this rapidly growing region," said Michael Chung, vice president, fibers international business and business development of Eastman. SK Chemicals will close its existing acetate fibers plant in Suwon, Korea, within the first half of 2009. The Suwon fibers factory currently has the capacity to produce 12,000 mt of cellulose acetate tow and 9,000 mt of cellulose acetate yarn. Eastman also manufactures cellulose acetate at its facilities in Kingsport, Tennessee, USA, and Workington, England. After the Korean factory is completed, Eastman's worldwide capacity for acetate tow will exceed 200,000 mt. Enditem