Eastman to close UK varnish plant, cut 18 jobs by '03

11 April 2002 16:00  [Source: ICIS news]

HOUSTON (CNI)--Eastman Chemical will close its Altovar varnish production facility in Banbury, UK by the end of this year and shift production to its plant in Kallo, Belgium, eliminating 18 jobs, the company said Thursday.

The Kingsport, Tennessee-based fibres and plastics company acquired the Kallo facility through its 1999 acquisition of Lawter.

Eastman said the Banbury site supplies varnishes for the graphics arts industry.

The company described the closure as "another step in its continuing strategy to improve capacity utilisation by consolidating manufacturing operations."

Eastman said charges related to the closure would not be material to its financial results.

But the company also said it would make some small investments to incorporate products from Banbury into the production schedule at Kallo.

Eastman said it has not yet completed its closure plan, including negotiations for severance of the employees there.

By: Gary Taylor
+1 713 525 2653

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