Eastman to close Hong Kong plant
KINGSPORT, Tenn., Jan. 14, 2002 - Eastman Chemical Company (NYSE:EMN) today announced that it has closed its cGMP custom manufacturing facility in Hong Kong, China. The closure of this plant is a continuation of Eastman's previously announced strategy to restructure the fine chemicals portion of its performance chemicals and intermediates business.
"The decision to close our Hong Kong plant comes after a thorough evaluation of the options concerning this site," said J. Brian Ferguson, Eastman's chairman and CEO. "Since announcing business portfolio changes in September 2000, we have made several restructuring moves targeted on improving our cost structure while positioning the business for future growth."
Eastman's Hong Kong facility was closed effective December 31, 2001. The number of employees at this site has decreased over the past several months as a result of the company's restructuring efforts, with some being redeployed to other Eastman sites. Forty-seven employees will be affected by the Hong Kong plant closure.
While charges related to the ongoing restructuring of the company's fine chemicals portion of its performance chemicals and intermediates business were taken in the second quarter of 2001, the Hong Kong plant closure will result in a small additional charge in fourth quarter 2001 related to costs associated with employee terminations and redeployments.
"While this was a difficult decision because it affects people who have made valuable contributions to our company, changes in business conditions have made it necessary to rationalize some capacity," said Keith Gockenbach, vice president of Eastman's performance chemicals and intermediates business. "We will continue to serve our customers from our other Eastman fine chemicals manufacturing facilities in Batesville, Ark.; Kingsport, Tenn.; and Llangefni, Wales.
With headquarters in Kingsport, Eastman manufactures and markets chemicals, fiber and plastics. The company has approximately 16,500 employees in 30 countries and had 2000 sales of $5.3 billion. For more information about Eastman and its products, visit www.eastman.com.
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