Eastman Continues Consolidation Efforts in Europe

Eastman Chemical Company announced another step in its continuing strategy to improve capacity utilization by consolidating manufacturing operations.

Eastman announced plans to close Altovar Ltd., its facility in Banbury, England, and move production to Kallo, Belgium, while maintaining storage and distribution capabilities in the United Kingdom for graphic arts products. The Banbury site, which has 18 employees, supplies varnishes for the graphic arts industry.

"Customers depend on Eastman to deliver high-quality products in a timely fashion, and we will continue to meet that expectation," said Francois Vleugels, vice president and general manager of Eastman's Coatings, Adhesives, Specialty Polymers and Inks business. Vleugels said he expects production at the Banbury facility to stop by the end of 2002.

Godefroy Motte, president of Eastman's Europe, Middle East and Africa region, said, "Moving production allows the company to improve productivity and maintain competitiveness. With some relatively small investments, we can incorporate products currently produced at Banbury into our larger operation at Kallo."

Charges related to the plant closure are not material to the company’s financial results.

With headquarters in Kingsport, Eastman manufactures and markets chemicals, fibers and plastics. The company has approximately 15,800 employees in more than 30 countries and had 2001 sales of US$5.4 billion. For more information about the company, visit www.eastman.com.

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