Eastman Inaugurates PET Plant in Mexico.

COSOLEACAQUE, VERACRUZ, Mexico--(BUSINESS WIRE)--June 11, 1996-- Eastman Chemical Company took an important step today in fulfilling its aggressive global growth strategy by officially opening its first Eastapak PET (polyethylene terephthalate) plant in Latin America.

Eastman Chemical Industrial de Mexico, S.A. de C.V. inaugurated the new plant in Cosoleacaque, Veracruz, Mexico.

Patricio Chirinos, state governor of Veracruz, and Earnest Deavenport Jr., chairman and chief executive officer of Eastman Chemical Company, inaugurated the plant during an official ceremony in Cosoleacaque.

"This is the first of several plants to be completed around the world as part of Eastman's growth strategy to locate manufacturing facilities closer to our customers," Deavenport said. "We have an aggressive plan to capitalize on the rapidly growing markets for PET with new plants under construction in three countries in addition to Mexico. Eastman is growing with other products as well through increased production at existing plants, a new plant for PETG specialty plastics in Malaysia and manufacturing for oxo chemicals in Singapore."

Eastman is the world's largest producer of PET for packaging. During construction of the Mexico plant, Eastman doubled capacity to 120,000 metric tons in order to meet the market demand in Mexico and other Latin American countries.

Eastman's state-of-the-art facility provides 130 full-time jobs on-site. In addition, it is expected that the new facility will generate significant business for a variety of local suppliers. Exports from the plant will help make Mexico a net exporter of PET plastics.

Eastapak PET from this plant will be used by Eastman's customers to make bottles, primarily for soft drinks and water.

Deavenport thanked Governor Chirinos and Raul Ramos Tercero from SECOFI for making the plant possible. He also recognized the prime contractor, ICA Fluor Daniel, for setting a Mexican national safety record during construction of the plant.

Deavenport said Eastman's aggressive global growth strategy calls for increasing manufacturing assets outside the United States to 30 percent and total sales outside the United States to 50 percent by the year 2000. "The opening of this plant in Mexico is a major step toward these goals."

Thomas A. Smith, president of Eastman's Latin America region, said the new plant reflects Eastman's commitment to and confidence in Mexico's economic future.

"Demand for PET in Mexico is growing at a rate of about 20 percent annually," Smith said. "Soft drink consumption in Mexico is second only to the United States. Our new plant allows us to provide Eastapak PET to our customers in Mexico and other parts of Latin America."

Deavenport said Eastman intends to maintain its global leadership position in PET through a series of expansions under way. In Spain, construction of a PET plant is more than 50 percent complete, with production set to begin in early 1997. A plant in Argentina is expected to come onstream first quarter 1998. In addition, construction will begin later this month on a PET plant in the Netherlands, and an expansion of PET production in Columbia, S.C., was recently announced.

Eastman Chemical Company manufactures and markets chemicals, fibers and plastics. The Latin America region employs nearly 200 people and accounted for US$268 million of Eastman's total 1995 sales of US$5 billion. Regional headquarters is in Mexico City. -0-

NOTE: Eastapak is a trademark of Eastman Chemical Company.

CONTACT: Eastman Chemical Company, Kingsport

Tom Dickens, 423/229-3149