Eastman close acetate tow manufacturing site in Workington, UK

Eastman to close acetate tow manufacturing site in Workington, UK

6:14 AM, 26th March 2015
Eastman to close acetate tow manufacturing site in Workington, UK

KINGSPORT, US: Eastman Chemical Company 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 tonne 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. We have been working with our customers throughout this process and remain committed to reliably supplying them with top quality products,” said Linda Hensley, Vice President and General Manager, Fibers segment, Eastman.

“This was a difficult decision because it impacts team members who have made valuable contributions to our company. 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,” added Hensley.

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.

© Worldofchemicals News

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