US Eastman eyes consistent licensing income from MEG tech: CEO

25 October 2013 17:12  [Source: ICIS news]

HOUSTON (ICIS)--Eastman Chemical expects to generate a consistent income stream from licensing with its newly-developed monoethylene glycol (MEG) technology, the CEO of the US-based chemicals major said on Friday.

Eastman announced earlier this week that it and UK-based petrochemicals technology firm Johnson Matthey Davy developed advanced technology to produce MEG from synthesis gas-based feedstocks. The new technology enables the production of MEG from a variety of raw materials, including coal, natural gas or biomass.

“I think our licensing stream has improved greatly with this new MEG technology. I think you are going to see a more consistent year-in year-out income coming from licensing,” CEO Jim Rogers told analysts during Eastman’s third-quarter earnings call.

Demand for the MEG technology should be "fairly strong", he said.

Rogers added that Eastman has yet to sell its first MEG license, “but we wanted people to be aware that we think that we are on to something really good here”.

In addition to MEG, Eastman also licenses acetyls technology.

By: Stefan Baumgarten
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