Eastman Chemical Co. (EMN) has announced plans to expand its Eastman Texanol ester alcohol manufacturing facility in Longview, TX. The expansion will increase capacity by more than 20% and is expected to be completed by the second half of 2016. The Longview Texanol facility is Eastman’s largest ester alcohol manufacturing site. The company also makes the product at its Jurong Island, Singapore site and through its Zibo, China joint venture.
Texanol ester alcohol, a coalescent, is widely used in latex paints as it lowers the risk of formulation failure, imparting superior quality and higher durability to both interior and exterior paints. The coalescents manufactured by Eastman help maximum film formation by gelling latex particles, which in turn, transform into a tough, continuous film, improving overall paint performance.
This investment is quite significant as it places Eastman in a leading position in the architectural coatings market and satisfies the requirements of its coalescent customers around the world.
Eastman has recently wrapped up its acquisition of Commonwealth Laminating & Coating, Inc. The acquired business, which is now part of Eastman Chemical’s Advanced Materials business division, is expected to add to the company’s earnings (barring acquisition-related costs and charges) for 2015.
Eastman Chemical’s diversified chemical portfolio, along with its integrated and diverse downstream businesses, remains its strength. The company also benefits from business restructuring and cost-cutting measures. It is also aggressively pursuing acquisitions to drive growth.
Eastman Chemical is a Zacks Rank #3 (Hold) stock.
Better-ranked companies in the chemical industry worth considering include Innospec Inc. (IOSP), Valhi, Inc. (VHI) and Celanese Corporation (CE). While Innospec and Valhi sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy).
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