Colortech Buys Eastman's Polyethylene Color Concentrates Business

Colortech Buys Eastman's Polyethylene Color Concentrates Business

Colortech, Inc., a subsidiary of Polyplast Muller GmbH, and Eastman Chemical Company jointly announce that Colortech has purchased Eastman's polyethylene color concentrates business. Terms of the sale, which was effective Sept. 30, 2003, were not disclosed.

Alex Rom-Roginski, president of Colortech, said that they had enjoyed a long relationship with Eastman, and they are look forward to the opportunity of serving their customers with the same level of quality and service which they will provide to their current customers. Colortech operates compounding plants in Morristown, Tenn., and Brampton, Ontario, Canada.

"Eastman has served the polyethylene color concentrates market for many years; but as a niche market for us, the business no longer meets our profit margin expectations," said Phil Griswold, vice president and general manager of Eastman's specialty plastics business. "We are pleased that Colortech, whose business focuses on this particular market, has purchased this business." Eastman has manufactured polyethylene color concentrates at its Kingsport plant.

Major end use markets for polyethylene color concentrates are flexible packaging and consumer goods such as plastic bags and containers.

Colortech's parent company, Polyplast Muller GmbH (PPM), has headquarters in Straelen, Germany. PPM companies have approximately 300 employees globally and produce masterbatches and compounds for different individual applications. For more information about Colortech, visit www.colortech.com.

Eastman, with headquarters in Kingsport, manufactures and markets chemicals, fibers and plastics. The company has approximately 15,800 employees in more than 30 countries and had 2002 sales of $5.3 billion.