Eastman investing $1.6 billion in Tennessee headquarters

By Frank Esposito
Senior Staff Reporter

Published: June 13, 2013 12:39 pm ET
Updated: June 13, 2013 12:43 pm ET

Image By: Eastman Chemical Co. Jim Rogers, chairman and CEO of Eastman Chemical Co. (left) and Tennessee Gov. Bill Haslam

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations Eastman Chemical Co.

Eastman Chemical Co. is embarking on a seven-year, $1.6 billion expansion of its headquarters site in Kingsport, Tenn.

The expansion — known as Project Inspire — will create 300 new jobs and will include a new office building as well as increased warehouse capacity, technology expansions and improvements to the site's infrastructure, energy efficiency and safety and environmental performance, officials said. The project is expected to be completed in 2020 — the 100th anniversary of Eastman's presence in Kingsport.

"This represents a landmark capital investment that will modernize and expand our largest manufacturing site and corporate campus here in Kingsport," Chairman and CEO Jim Rogers said in a May 29 news release. "I can think of no better way to honor our long-term commitment to this site and surrounding community than through this very significant investment in our future."

Eastman employs 7,000 — just over half of its global total — in Kingsport and ranks as one of the state's largest employers. In the release, Tennessee Gov. Bill Haslam said that Eastman "has been crucial to the state's economy, growing into a global brand, and today's announcement means they will continue to grow right here where they started."

The state will provide partial funding for the corporate campus expansion and road infrastructure improvements, as well as a grant to meet advanced manufacturing training needs at the state's Regional Center for Advanced Manufacturing in Kingsport. In a June 12 phone interview, Eastman spokeswoman Tracy Kilgore said that the firm "will be able to maximize its tax credits" for the project.

Kilgore added that Eastman's Tritan-brand copolyester business also will benefit from the expansion, but no details were available. Administration and production for Tritan both are based in Kingsport.

The new expansion was announced not long after Eastman completed Project Reinvest, a $1.3 billion site improvement project that it launched in Kingsport in 2007.

Eastman Kodak Co. established a production site in 1920 when it needed a domestic source for raw materials used in its photography business. Eastman Chemical was spun off as a separate company in 1990.

Eastman has annual sales of about $9 billion, including its recent purchase of specialty chemicals maker Solutia. In 2012, sales in Eastman's adhesives and plasticizers unit grew almost 4 percent, but sales in the firm's advanced materials unit — including Tritan and Solutia's polyvinyl butral (PVB) products slipped almost 3 percent.

Combined sales were flat in the first quarter of 2013, but Eastman's profit jumped almost 60 percent to almost $250 million when compared to the same quarter in 2012.

Eastman's per-share stock price began the year around $68 and has bounced between $65 and $74. It was near $69 in early trading June 12.


Comments

Eastman investing $1.6 billion in Tennessee headquarters

By Frank Esposito
Senior Staff Reporter

Published: June 13, 2013 12:39 pm ET
Updated: June 13, 2013 12:43 pm ET

Post Your Comments


Back to story


More stories

Image

A. Schulman reports growth in sales and profit

October 22, 2014 7:58 pm ET

Executives with materials maker A. Schulman Inc. have to be smiling after seeing full results for the firm's 2014 fiscal year.    More

Image

PolyOne takes on LED lighting

October 22, 2014 4:23 pm ET

PolyOne Corp. is making inroads into LED lighting applications with its Therma-Tech-brand material technology.    More

Image

Bergen International adds manufacturing space, extrusion line

October 22, 2014 3:42 pm ET

Chemical foaming agent manufacturer Bergen International LLC recently doubled its manufacturing capacity, added an extrusion line and laboratory...    More

Image

DuPont materials taking more ground in auto, medical, electronics

October 22, 2014 2:41 pm ET

Materials made by DuPont Co. are making inroads with products ranging from auto coolant pipes to circuit breakers to surgical devices.    More

Image

Materials companies introduce a range of new products at Fakuma

October 22, 2014 11:29 am ET

DuPont Co. led a parade of materials firms with new products at Fakuma 2014.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events