Company will benefit from raw material offtake agreement for its specialty products
KINGSPORT, Tenn., January 8, 2020 – Eastman Chemical Company (NYSE: EMN) announced today participation in a strategic project with Gulf Coast Ammonia (GCA) and Air Products, Inc. (NYSE: APD). GCA will lease a portion of Eastman’s Texas City site and will own a new world-scale ammonia production plant. Air Products will build, own and operate at Eastman’s Texas City site its largest-ever steam methane reformer, an air separation unit to supply nitrogen, and a steam turbine generator to supply power and certain other utilities to operate the new ammonia plant.
Eastman acquired its Texas City site on the U.S. Gulf Coast through its purchase of Sterling Chemical, Inc. in August 2011 and restarted idled plasticizer manufacturing capacity to produce non-phthalate plasticizers including Eastman 168™ non-phthalate plasticizer shortly afterwards.
This latest project leverages a portion of the Eastman Texas City site’s available land, infrastructure, and deep-water port to create value for Eastman through a long-term lease, site service and utility cost sharing, and a strategic off-take agreement to purchase cost-advantaged ammonia to produce its specialty products.
“We are excited to welcome Gulf Coast Ammonia and Air Products to our Texas City site and to help bring growth to the Texas City area through this mutually beneficial project,” said Lucian Boldea, executive vice president of Additives & Functional Products and Chemical Intermediates. “We are seeing increasing interest in opportunities at the site and are continuing to work on additional value-creating strategic projects.”
Eastman is pleased that GCA is incorporating state-of-the-art safety processes in the new facility. Eastman has a long history with Air Products and welcomed the opportunity to work with them on this project.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end-markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,500 people around the world and serves customers in more than 100 countries. The company had 2018 revenues of approximately $10 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.
Media: Kristin Parker
Investors: Greg Riddle