Eastman Chemical Company (NYSE:EMN) announced that it has completed the acquisition of Tongxiang Xinglong Fine Chemical Co., Ltd., a cellulose-based specialty polymers manufacturing facility located near Shanghai, China. Terms of the transaction were not disclosed.
The acquisition will support Eastman's Coatings, Adhesives, Specialty Polymers and Inks segment, specifically its Ensure product line, by providing additional capacity to meet the growing demand in China. Similar to Eastman's other cellulose esters, Ensure has approximately 60 percent bio-renewable content and is used in a variety of end-market applications such as coatings for packaging and consumables.
"This is an exciting addition to our specialty polymers product lines that reinforces Eastman's commitment to sustainably-advantaged products like Ensure," said Brian Yoon, Asia Pacific Regional Business Director. "Not only will this additional capacity allow us to grow with our customers in China, but it will allow us to free-up capacity at our facility in Kingsport, Tenn., to meet the growing demand for our other cellulose-based specialty polymers worldwide."