Eastman eyes mid-year announcement on plans for 4th Texas cracker

26 April 2013 15:46  [Source: ICIS news]

HOUSTON (ICIS)--Eastman Chemical hopes to announce by mid-2013 on how it will proceed on plans to restart an idled cracker in Longview, Texas, known as the “fourth cracker”, the CEO of the US-based chemicals firm said on Friday.

“We have got site visits going on, and we have narrowed the list [of potential partners] down to a few parties; hopefully mid-year, we can kind of spell out who we are going to work with and what it’s going to look like,” Jim Rogers told analysts during Eastman’s 2013 first-quarter results conference call.

Rogers added that he worried “a little bit that guys are spending too much time, [and] they are building the anticipating up too much” with regard to Eastman’s plans for the cracker.

“We are a pretty good-sized company, and restarting another cracker and doing something with the excess ethylene would probably take two to three years to get in place anyway,” he said.

“I hope they are not buying our stock waiting for that shoe to drop,” he said.

“Whatever we do with a partner, it’s going to be a long-term arrangement, whether we will continue to own that cracker, or we sell the cracker, or what we do with our excess ethylene,” Rogers said. “Whatever we do is going to be a long-term solution, it’s not going to be spot-market exposure.”

By: Stefan Baumgarten
+1 713 525 2653

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