Eastman to Acquire Sterling Chemicals

Eastman will restart Sterling's currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers.

Eastman Chemical Co. on June 22 said it will acquire Sterling Chemicals Inc., a single-site North American petrochemical producer.

The deal is for $100 million in cash, and includes Sterling's plasticizer and acetic-acid manufacturing assets in Texas City, Texas.

Eastman plans to modify and restart Sterling's currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168 non-phthalate plasticizers.

In the North American and European non-phthalate plasticizers markets, total sales volume is expected to increase at a compounded annual rate of approximately 7% over the next five years, Eastman says.

The acquisition also includes Sterlings acetic acid production facility and its supply to BP Amoco Chemical Co. under a long-term production agreement.

Eastman manufacturers chemicals, fibers and plastics and employs 10,000 globally.

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