Eastman Chemical Co.'s new 350,000 tpa PET facility has begun production and will be fully operational in the Q1-2007. The company expects to reach a 10% operating margin at its polyethylene terephthalate (PET) polymers business by H2-2008, and would increase its use of coal as a raw material.
The company also plans to use coal gasification techniques as part of its plan to more than double the volume of products it derives from coal as a raw material, providing the company with a significant cost advantage. Eastman Chemical Co. has plans to make significant investment at it's Longview plant. The proposals to increase the company's use of gasification (the conversion of coal and other materials into gas fuel) would put parts of soon-to-be-retired portions of the Longview plant back into operation. The company's plant in Tennessee has been successful in the conversion of coal and other materials into gas fuel, proving that potential gasification projects are a way to combat the high and volatile cost of using oil and natural gas in its production process.
In October, Eastman had announced the sale of its local polyethylene operation to Houston-based Westlake Chemical. Other local operations continue to remain under Eastman's ownership. As part of the announcement, Eastman plans to shut down 3 ageing hydrocarbon cracking plants that convert propane and ethane. A newer cracking plant will continue to operate. Instead of purchasing all the propylene needed after the crackers shut down, the company plans to manufacture a certain percentage of it by going from gasification to propylene.
16-Nov-06 
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