Eastman's PET resins, comprising 23% of company sales are facing increased pressure from Asian imports and prospective capacity additions of 21% in North America in 2007. This could lead to PET operating losses in 2007 through 2009. A similar downturn in the PET resin segment occurred in the late 1990s.
Eastman Chemical may announce the sale or closure of unprofitable PET operations in November for its facilities in Spain, Argentina, Mexico, or the United Kingdom. Restructuring of performance chemicals could be another possibility, which would likely mean the closure of its ethylene facility in Longview, Texas.
12-Jun-06 
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