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Eastman Chemical Company: Eastman to Close Workington Acetate Tow Manufacturing Site

KINGSPORT, Tenn., March 25, 2015
- Eastman Chemical Company (NYSE:EMN) today announced it has decided to close
its Workington, UK, acetate tow manufacturing site. Production at the site
will cease in April, and site closure is expected to be completed in the
third quarter of 2015. As previously announced, Eastman entered the
consultation process with employee and union representatives in response to
changes in global market demand for acetate tow. The Workington site has
24,000 metric tons of acetate tow manufacturing capacity. Projected savings
from the closure are annual operating costs of approximately $20 million and
a total of approximately $20 million of infrastructure capital expenditures
planned for the next five years.

"With changes in global market demand and recent and announced global acetate
tow manufacturing capacity additions, we need less capacity to supply our
customers," said Linda Hensley, vice president and general manager of the
Fibers segment. "We have been working with our customers throughout this
process and remain committed to reliably supplying them with top quality

Eastman manufactures Estron(TM) acetate tow, which is a fibrous material
downstream customers use to manufacture cigarette filter rods. Eastman will
continue to manufacture acetate tow at its facilities in Kingsport, Tenn.,
and Ulsan, Korea. In addition, Eastman has a joint venture with China
National Tobacco Company in Heifei, China.

"This was a difficult decision because it impacts team members who have made
valuable contributions to our company," Hensley added. "Eastman's decision to
close the Workington plant is not a reflection of the performance of the
employees who work at the site and we will be doing all we can to support
employees to ensure they are treated with the respect they deserve."

This action will result in shut down costs and restructuring charges totaling
approximately $100 million primarily in the first half of 2015, approximately
$80 million of which are non-cash.

Eastman is a global specialty chemical company that produces a broad range of
products found in items people use every day. With a portfolio of specialty
businesses, Eastman works with customers to deliver innovative products and
solutions while maintaining a commitment to safety and sustainability. Its
market-driven approaches take advantage of world-class technology platforms
and leading positions in attractive end-markets such as transportation,
building and construction, and consumables. Eastman focuses on creating
consistent, superior value for all stakeholders. As a globally diverse
company, Eastman serves customers in approximately 100 countries and had 2014
revenues of approximately $9.5 billion. The company is headquartered in
Kingsport, Tennessee, USA and employs approximately 15,000 people around the
world. For more information,

# # #

Media: Kristin Parker
423-229-2526 /

Investors: Greg Riddle
212-835-1620 /


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eastman Chemical Company via Globenewswire


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