EASTMAN, SINOPEC QILU

● Eastman Chemical Ltd., and Sinopec
Qilu Petrochemical Company signed
an agreement to form a joint venture
to produce Texanol ester alcohol and
TXIB plasticizer in China. Texanol
ester is a coalescing aid used in architectural
paints and TXIB plasticizer
is a primary modifier for vinyl, urethanes
and other polymers used in
the production of flooring and wallpaper.
The plant will be built at
Sinopec Qilu’s existing site in Zibo,
Shandong province. Construction of
the $30 million facility is expected to
begin in 2003 and should be completed
by the end of 2004. The joint venture
will be named Zibo Qilu
Eastman Specialty Ltd.
“This joint venture is a strategic
step in maintaining Eastman’s commitment
in Asia Pacific and, in particular,
in Greater China,” said
Damon Warmack, vice president and
managing director of Eastman’s Asia
Pacific region. “It also strengthens
our leadership in the coatings additives
market and provides a springboard
to promote our specialty oxo
derivatives market in China.”
Mr. Warmack added that
Eastman’s investment would
enhance China’s capabilities in the
specialty chemicals sector, which is
expected to grow with the nation’s
entry into the World Trade
Organization and its access to new
markets. “China will continue to be
the fastest growing market in the
world, and the synergy established
with Sinopec Qilu via this joint venture
will provide long-term business
growth opportunities,” he said.