Eastman Announces IntegRex Technology, An Evolution In PET Manufacturing

Eastman Chemical Company, the world's leading supplier of polyethylene terephthalate (PET) for packaging, announces IntegRex, a breakthrough technology for the manufacture of PET resin. The company will build a 350,000 metric ton integrated PET manufacturing facility using this new technology at its existing site in Columbia, SC. Eastman's existing purified terephthalic acid facilities will be retrofitted using additional elements of IntegRex to supply intermediates for the expansion. The company expects to receive patents on more than 100 process and product innovations surrounding this breakthrough technology, which encompasses manufacturing process integration from paraxylene (PX) to PET.

"IntegRex is a major innovation in paraxylene to PET production technology," said Eastman Chairman and CEO Brian Ferguson. "Building on our established strength in chemical process innovation and our recognized excellence in polyester technology, Eastman has developed a technology that we believe will set us apart as the leader in the manufacture of PET resin."

"We have made a technology investment that completely redefines the PX to PET manufacturing process, allowing us to meet future market demand with the most advanced technology," said Allan Rothwell, Eastman executive vice president, and Voridian division president. "The competitive advantage this technology provides our PET business will enable us to strengthen our leadership position in the polyesters for packaging industry and is a key element in our integrated polyester strategy."

PET packaging industry growth rates are driven by continued strong demand for bottled water, the expansion of niche carbonated soft drink markets and new packaging applications for PET. Industry analysts project PET packaging industry growth rates will require new capacity to be available for consumption in North America by late 2006. Plans for the new facility and supporting infrastructure represent an investment of more than $100 million. Contracts for construction of the new Calhoun County, SC-based facility will be awarded in December with the full capacity on-line by the fourth quarter, 2006.

Headquartered in Kingsport, Tenn., Eastman manufactures and markets plastics, fibers and chemicals. The company has approximately 12,000 employees and had 2003 sales of $5.8 billion.

Source: Eastman Chemical Company