About Eastman Chemical Co

Eastman Chemical Company (Eastman) operates as a global specialty materials company that produces a broad range of products found in items people use every day. With a robust portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions with a commitment to safety and sustainability. Eastman uses an innovation-driven growth model which consists of leveraging world class scalable technology platforms, delivering differentiated application development capabilities, and relentlessly engaging the market. The company's world class technology platforms form the foundation of sustainable growth by differentiated products through significant scale advantages in research and development (R&D) and global market access. Molecular recycling technologies continue to be an area of investment focus for the company and extend the level of differentiation afforded by its world class technology platforms. Key areas of application development include thermoplastic conversion, functional films, coatings formulations, textiles and nonwovens, and personal and home care formulations. The company engages the market by working directly with customers and downstream users, targeting attractive niche markets, and leveraging disruptive macro trends. Strategy Integral to the company's strategy for growth is leveraging its heritage expertise and innovation within its cellulosic biopolymer and acetyl, olefins, polyester, and alkylamine chemistries. The company sells differentiated products into diverse markets and geographic regions and engages the market by collaborating and co-innovating with customers and downstream users in existing and new niche markets to creatively solve problems. The company's strategy will also focus on organic growth initiatives and targeted bolt-on acquisitions. Segments The company operates through four segments: Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers. Advanced Materials segment In the AM segment, the company produces and markets polymers, films, and plastics with differentiated performance properties for value-added end-uses in transportation; durables and electronics; building and construction; medical and pharma; and consumables end-markets. Key technology platforms for this segment include cellulosic biopolymers, copolyesters, and PVB and polyester films. Eastman's technical, application development, and market development capabilities enable the AM segment to modify its polymers, films, and plastics to control and customize their final properties for the development of new applications with enhanced functionality. For example, Tritan copolyesters are a leading solution for food contact applications due to their performance and processing attributes and bisphenol A free (BPA free) properties. The Saflex Q Series product line is a leading acoustic solution for architectural and automotive applications. The company also maintains a leading solar control technology position in the window films market, as well as advanced urethane film and coatings technologies in the paint protection film market. Principal Products Advanced Interlayers: Products include Saflex, Saflex Q Series, and Saflex HUD interlayer products. Competition: The company’s competitors include Sekisui Chemical Co., Ltd.; Kuraray Co., Ltd.; Kingboard (Fo Gang) Specialty Resins Limited; and Chang Chun Petrochemical Co., Ltd. Performance Films: Products include LLumar, Flexvue, SunTek, V-KOOL, and Gila. Competition: The company’s competitors include XPEL, Inc.; 3M Company; and Saint-Gobain S.A. Specialty Plastics: Products include Tritan copolyester, Eastar copolyesters, Spectar copolyester, Embrace copolyester, Visualize, Eastman Aspira family of resins, and Treva. Competition: The company’s competitors include S.K. Chemical Industries; Sichuan Push Acetati Company Limited; Daicel Chemical Industries Ltd.; Covestro AG; Trinseo S.A.; and Saudi Basic Industries Corporation. Strategy Management applies Eastman's innovation-driven growth model in the AM segment by leveraging innovation and technology platforms to develop new and multi-generational products and applications to help facilitate AM segment growth and leverage its manufacturing capacity. The segment's product portfolio is aligned with underlying energy efficiency trends in both automotive and architectural markets. Additionally, the AM segment is positioned to benefit from Eastman polyesters and acetyl streams sustainability innovations by leveraging molecular recycling technology to enable various waste plastics to be recycled into specialty plastics products marketed and sold under the Renew product designation. The AM segment expects to continue to improve its product mix from increased sales of premium products, including Tritan copolyester, Tritan Renew, Visualize material, Saflex Q acoustic series, Saflex HUD interlayer products, LLumar, V-KOOL, and SunTek window and protective films. In 2023, the AM segment: achieved key milestones for planned molecular recycling facilitie; continued adoption of polyester renewal technology for products, including Tritan Renew, Cristal Renew, and Cristal One Renew across several end-markets, including cosmetic packaging, eyewear and power tools; continued to expand portfolio of differentiated post-applied window films and protective films for automotive and architectural applications; launched Saflex Horizon LVID, a next generation PVB interlayer that enhances the driving experience while enhancing road safety in automotive original equipment manufacturers (OEM); and completed the acquisition of Ai-Red Technology (Dalian) Co., Ltd., a manufacturer and supplier of paint protection and window film for the auto market in the Asia Pacific region, which is expected to enhance continued global growth of the AM segment performance films product line. Additives & Functional Products segment In the AFP segment, the company manufactures materials for products in the food, feed, and agriculture; transportation; water treatment and energy; personal care and wellness; building and construction; consumables; and durables and electronics end-markets. Key technology platforms are cellulosic biopolymers, polyester polymers, alkylamine derivatives, and propylene derivatives. The AFP segment focuses on producing high-value additives that provide critical functionality but which comprise a small percentage of total customer product cost. The segment principally competes on the differentiated performance characteristics of its products and through leveraging its strong customer base and long-standing customer relationships to promote substantial recurring business and product development. A critical element of the AFP segment's success is its close formulation collaboration with customers through advantaged application development capability. Care Additives: Products include Alkylamine derivatives, Organic acids and derivatives, and Cellulosic biopolymers. Competition: The company’s competitors include BASF SE; Dow Inc.; Huntsman Corporation; Corteva, Inc.; Argo-Kanesho Co., Ltd.; Bayer AG; and Adisseo. Coatings Additives: Products include Polymers cellulosics, Tetrashield polyesters, polyolefins, Additives and Solvents, Texanol, Optifilm, ketones, esters, and EastaPure electronic chemicals. Competition The company’s competitors include BASF SE; Dow Inc.; Oxea; Celanese Corporation; and Alternative Technologies. Functional Amines: Offers Alkylamines. Competition: The company’s competitors include BASF SE; US Amines Limited; Oxea GmbH; and Arclin Inc. Specialty Fluids & Energy: Products include Therminol, Turbo oils, Skydrol, SkyKleen, and Marlotherm. Competition: The company’s competitors include Dow Inc. and Exxon Mobil Corporation. Strategy Management applies Eastman's innovation-driven growth model in the AFP segment by leveraging proprietary technologies for the continued development of innovative product offerings and focusing growth efforts in end-markets, such as food, feed, and agriculture; transportation; water treatment and energy; personal care and wellness; building and construction; consumables; and durables and electronics. Eastman BPA-NI Tetrashield protective resins enable metal packaging coatings formulation with a unique balance of durability and flexibility, improving performance, regulatory compliance, shelf life, and consumer safety. Such protective resins can also be used in protective coatings, industrial coatings, and automotive coatings. The company is also developing solutions to address the environmental challenges caused by non-biodegradable microplastics in personal care products by leveraging its world-class biodegradable cellulosic biopolymer technology platform in biodegradable microbeads for personal care applications. In 2023, the AFP segment: invested in additional capabilities of Eastapure electronic solvents for use in manufacturing of semiconductor chips and other electronic applications with extremely low organic and inorganic impurities; received customer approval for Tetrashield resins in industrial powder coating applications providing ultradurable, long weathering alternatives to traditional fluoropolymers that are specifically designed to meet the demanding requirements of building and construction, as well as other high-performance outdoor applications; developed cellulosic microbeads which offer a higher performance, biodegradable alternative to traditional microplastic alternatives and are engaging alpha-customers in the personal care end-market; received prestigious Green Seal verification of coalescents Optifilm for use in products that are safer for human and environmental health, in line with Eastman's continued commitment to environmentally friendly products; and received Process Heating & Cooling Innovation and Artificial Intelligence Excellence awards for Fluid Genius, an advanced software that equips end users with predictive insights to optimize heat transfer fluid performance. Chemical Intermediates segment Eastman leverages large scale and vertical integration from the cellulosic biopolymers and acetyl and olefins streams to support the company's specialty operating segments with advantaged cost positions. The CI segment sells excess intermediates beyond the company's internal specialty needs into end-markets, such as industrial chemicals and processing, building and construction, health and wellness, and food and feed. Key technology platforms include acetyls, oxos, plasticizers, and polyesters. The CI segment product lines benefit from competitive cost positions primarily resulting from the use of and access to lower cost raw materials, and the Company's scale, technology, and operational excellence. Examples include produced acetic anhydride used in the manufacturing of cellulosic biopolymers and acetyl stream product lines, propylene and ethylene used in the production of olefin derivative product lines such as oxo alcohols and plasticizers. The CI segment also provides superior reliability to customers through its backward integration into readily available raw materials, such as propane, ethane, and propylene. Several CI segment product lines are affected by cyclicality, most notably olefin and acetyl-based products. This cyclicality is caused by periods of supply and demand imbalance, when either incremental capacity additions are not offset by corresponding increases in demand, or when demand exceeds existing supply. In 2023, the company completed the sale of its operations located in Texas City, Texas, excluding its plasticizer operations. Principal Products Intermediates: Products include Oxo alcohols and derivatives, acetic acid and derivatives, acetic anhydride, Ethylene, Glycol ethers, Esters, and Organic acids and derivatives. Competition: The company’s competitors include Lyondell Bassell, BASF SE, Dow Inc., Oxea, Celanese Corporation, Lonza, and Ineos Group Holdings S.A. Plasticizers: Products include Eastman 168, Dioctyl phthalate (DOP), Benzoflex, TXIB, and Effusion. Competition: The company’s competitors include BASF SE; Exxon Mobil Corporation; LG Chem, Ltd.; and Lanxess AG. Strategy To maintain and enhance its status as a producer and optimize earnings, the CI segment continuously focuses on capacity utilization. This includes focusing on products used internally by other operating segments, thereby supporting growth in specialty product lines throughout the company, and also external licensing opportunities. Through the CI segment, the company has leveraged the advantage of its highly integrated manufacturing facilities. Scale at the Kingsport, Tennessee manufacturing facility allows for competitive advantage in the production of acetic anhydride and other acetyl derivatives. Fibers segment In the Fibers segment, Eastman manufactures and sells acetate tow and triacetin plasticizers for use in filtration media, primarily cigarette filters; cellulosic filament yarn and staple fibers for use in apparel, home furnishings, and industrial fabrics; nonwoven media for use in filtration and friction applications, used primarily in transportation, industrial, and agricultural end-markets; and cellulose acetate flake and acetyl raw materials for other acetate fiber producers. The company is the world's largest producer of acetate yarn and has been in this business for over 85 years. The 10 largest Fibers segment customers accounted for approximately 60 percent of the segment's 2023 sales revenue, and include multinational as well as regional cigarette producers, fabric manufacturers, and other acetate fiber producers. The company's fully integrated fibers manufacturing process employs unique technology that allows it to use a broad range of high-purity wood pulps for which it has dependable sources of supply. Acetate Tow: Offers Estron. Competition: The company’s competitors include Celanese Corporation; Cerdia International; and Daicel Corporation. Acetate Yarn and Fiber: Offers Naia and Estron. Competition: The company’s competitors include UAB Dirbtinis Pluostas; Lenzing AG; and Aditya Birla Group. Acetyl Chemical Products: Offers Estrobond. Competition: The company’s competitors include Jiangsu Ruijia Chemistry Co., Ltd.; Polynt SpA; Daicel Corporation; Celanese Corporation; and Cerdia International. The company offers Nonwovens. Competition: The company’s competitors include Hollingsworth and Vose Company, Lydall, Inc., and BorgWarner Inc. Strategy Management applies the innovation-driven growth model to the Fibers segment by leveraging its strong customer relationships and industry knowledge to maintain a leading industry position in the global market. The segment benefits from a state-of-the-art, world class, acetate flake production facility at the Kingsport, Tennessee site, which is supplied from Eastman's vertically integrated coal gasification facility and is the largest and most integrated acetate tow site in the world. The Fibers segment also expects to benefit from Eastman's recently developed carbon renewal technology, which enables the substitution of fossil fuel feedstock with recycled waste content. Products using this technology are marketed and sold under the Renew product designation. In 2023, the Fibers segment: commercialized Naia Renew Enhanced Sustainability, an offering sourced from 60 percent recycled content with a global fashion brand known for its sustainability focus; and reached over 70 signed trademark licensing agreements with high profile brands from major multinational fashion brands to sustainable champions in outdoor clothing. Seasonality Eastman's earnings are typically lowest in fourth quarter (yea ended December 31, 2023), and cash flows from operations are typically highest in the second half of the year due to seasonal demand based on general economic activity in the company's key markets. Results in all segments except the Fibers segment are typically weaker in the fourth quarter due to seasonal downturns in key markets. The coatings additives product line of the AFP segment and the intermediates product line of the CI segment are impacted by the cyclicality of key end products and markets, while other operating segments and product lines are more sensitive to global economic conditions. Eastman is exposed to consumer discretionary end-markets and changes in global consumer spending, particularly in the AM and AFP segments. Sales, Marketing, and Distribution Eastman markets and sells products primarily through a global marketing and sales organization which has a presence in the United States and approximately 30 other countries, selling into more than 100 countries around the world. The company focuses its market engagement on attractive niche markets, leveraging disruptive macro trends, and market activation throughout the value chain with both customers and downstream users. Eastman's strategy is to target industries and markets where the company can leverage its application development expertise to develop product offerings to provide differentiated value that address current and future customer and market needs. The Company's strategic marketing approach and capabilities leverage the company's insights about trends, markets, and customers to drive development of specialty products. Through a highly skilled and specialized sales force that is capable of providing differentiated product solutions, Eastman strives to be the preferred supplier in the company's targeted markets. The company's products are also marketed through indirect channels, which include dealers and contract representatives. Sales outside the United States tend to be made more frequently through dealers and contract representatives than sales in the United States. The combination of direct and indirect sales channels, including sales online through its Customer Center website, allows Eastman to reliably serve customers throughout the world. The company's products are shipped to customers and downstream users directly from Eastman manufacturing plants and distribution centers worldwide. Intellectual Property, Trademarks, and Licensing As a producer of a broad range of advanced materials, specialty additives, chemicals, and fibers, Eastman owns over 800 active United States patents, over 1,600 active foreign patents, and over 4,700 active worldwide trademark applications and registrations. Domestic and foreign patents within the company's portfolio are subject to various expiration dates, depending on the dates they were originally filed and laws governing patent terms and extensions thereof in applicable jurisdictions. Customers Eastman has an extensive customer base and, while it is not dependent on any one customer, loss of certain top customers could adversely affect the company until such business is replaced. The top 100 customers accounted for approximately 60 percent of the company's 2023 sales revenue. Environmental The company is subject to laws, regulations, and legal requirements relating to the use, storage, handling, generation, transportation, emission, discharge, disposal, remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which it does business. These health, safety, and environmental considerations are a priority in the company's planning for all existing and new products and processes. The Environmental, Safety, and Sustainability Committee of Eastman's Board of Directors oversees the company's policies and practices concerning health, safety, and the environment and its processes for complying with related laws and regulations and monitors related matters. Under the U.S. Occupational Safety and Health Act of 1970, as administered by the Occupational Safety and Health Administration (OSHA), some of the company's operations are subject to workplace standards under OSHA's Process Safety Management program. From time to time, the company may incur significant capital expenditures to maintain compliance with the requirements of this program. In some cases, applicable environmental regulations such as those adopted under the Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act, and related actions of regulatory agencies determine the timing and amount of environmental costs incurred by the company. History Eastman Chemical Company was founded in 1920. The company was incorporated in Delaware in 1993.