U.S.-based Eastman Chemical Company has acquired Tongxiang Xinglong Fine Chemical Company, a cellulose-based specialty polymers manufacturing facility located near Shanghai.
The acquisition will support Eastman's coatings, adhesives, specialty polymers, and inks segment, specifically its Ensure product line, by providing additional capacity to meet the growing demand in China. Similar to Eastman's other cellulose esters, Ensure has approximately 60 percent bio-renewable content and is used in a variety of end-market applications such as coatings for packaging and consumables.
According to Brian Yoon, the business director of Eastman's Asia Pacific Region, this additional capacity will allow the company to grow with its customers in China, and will also allow Eastman to free-up capacity at its facility in Kingsport, Tennessee, to meet the growing demand for the company's other cellulose-based specialty polymers worldwide.
The terms of the transaction have not been disclosed.