Eastman Chemical Co. of Kingsport, Tenn., on Sept. 1 created a $500 million business organization - Specialty Plastics - by merging its Specialty Packaging Plastics and Performance Plastics businesses. The merger focuses the businesses' activities on specialty markets while streamlining and eliminating duplications, Gerald Morie said in a telephone interview Sept. 4.
Morie, the former vice president and general manager for the Specialty Packaging Plastics business, was named vice president and general manager of the Specialty Plastics organization.
Combining the businesses will take several months, said Morie. He expects the combination of the businesses to have a minimal effect on customers, although there may be some changes in areas where duplications occurred.
For example, Eastman's Specialty Packaging Plastics business previously dealt with packaging products for medical applications, while the Performance Plastics business dealt with products for medical devices.
``Those areas will be combined, so one person will cover both,'' he said.
Morie noted that the combination of the two businesses establishes an organization similar in size to Eastman's other operating units.
Within the new business organization will be five distinct units, each of which will be led by a unit executive and oriented toward doing business on a global level. They are:
Consumer and personal care.
Food and specialty packaging, the largest segment.
Morie expects the structured products segment to post double-digit growth rates in the near future, giving it the highest growth rate among the segments.
Separately, Eastman also established a new function - Plastics Alliances - as a part of its corporate development and strategy operations.
Parker Trent, the former vice president and general manager for Eastman's Performance Plastics business, was named vice president and general manager for the new operation.
Plastics Alliances has been charged with identifying and pursuing acquisitions and other business arrangements to expand and strengthen Eastman's position in the plastics industry.