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.