EASTMAN REACHES AGREEMENT TO CLOSE DÜSSELDORF MANUFACTURING SITE
20 December 2001 - Eastman Chemical Company

Eastman Chemical Company has reached agreement with the Works Council of Eastman Chemical Jaeger GmbH & Co. KG to close its manufacturing site in Düsseldorf, Germany.

This agreement is the result of discussions which began on 22 October with Eastman’s announcement of its intent to consolidate manufacturing sites for its coatings products.

Godefroy Motte, president of the Eastman's operations in Europe, said Eastman plans to cease all production activity at the site by 31 March 2002, and to have all site inventory depleted by 1 July 2002.

'Eastman will work with its customers to minimize the impact on their business during this closure period,' Motte said. Motte added that communications to employees and customers during the next few weeks will address issues specific to them.

Eastman also has a facility in Hamburg, Germany, which will remain in full operation.

Eastman, with headquarters in Kingsport, manufactures and markets chemicals, fibers and plastics. It has approximately 16,000 employees in 30 countries and had 2000 sales of $5.3 billion.

On 22 October, 22/10/2001 Eastman began consultation with the Works Council of Eastman Chemical Jaeger GmbH & Co. KG in an effort to reach agreement to close its operating site in Duesseldorf, Germany.

'The decision to pursue discussions to close the plant is the result of our strategy to consolidate manufacturing of our coatings products,' said J. Brian Ferguson, president of Eastman's Chemicals Group. 'This is part of our previously-announced strategy to meet our customers' needs in the most productive and efficient way possible.'

The Duesseldorf plant makes specialty polymers used by formulators of architectural and industrial coatings, printing inks, adhesives, sealants and floor care products. There are about 90 employees at that site. The facility was part of Eastman's acquisition of Ernst Jaeger, Fabrik Chemischer Rohstoffe GmbH & Co. in 1998.

Godefroy Motte, president of the Eastman's operations in Europe, said the company will keep employees and customers informed of decisions reached by the Works Council and Eastman. 'We expect these discussions will take several weeks, during which time the business activities of Eastman Chemical Jaeger will continue as normal,' Motte said.

Closing of the plant is expected to result in a charge against earnings in the fourth quarter of 2001.

http://www.eastman.com

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