Eastman Chemical enters South Korean joint venture
December 22, 2008
The Associated Press reports that Eastman Chemical Co. and South Korea-based SK Chemicals Co. Ltd. are forming a joint venture to build a manufacturing plant that will produce cellulose acetate tow, a raw material used primarily in cigarette filters. Financial terms of the agreement, which will form a company named Eastman Fibers Korea Ltd., and capital expenditures have not been disclosed. Eastman will have 80 percent ownership and will operate the facility. SK Chemicals will own the remainder and be responsible for construction of the plant to be located next to an SK Chemicals site in Ulsan, South Korea. Construction is expected to begin in early 2009 and finished in the second quarter of 2010. The plant is expected to produce about 27,000 metric tons of cellulose acetate tow annually.