Eastman Chemical Company (EMN - Free Report) recently announced that it has successfully started the methyldiisopropanolamine (MDIPA) unit in Nanjing, China. Per the company, the new product will be mainly sold in the home care industry.
The MDIPA project highlights the company’s commitment to customers as well as its ability to execute projects safely and on time. China is considered by the company as a growth market for care chemicals. Eastman Chemical is focused on making further developments in the Nanjing site.
Additionally, the company has decided to expand its alkyl alkanolamine capacity in Nanjing. It will build a world scale unit mainly to produce Dimethylaminoethanol (DMAE/DMEA), which is used for making intermediates for the water treatment and energy markets. The project is currently under progress and is expected to be finished in the second half of 2020.
Notably, the company has changed the site's name from Te An Ling Tian Fine Chemical Co., Ltd. (TALT) to Eastman Chemical (Nanjing) Co., Ltd. The Nanjing plant makes alkyl allkanolamines, methylamines and solvents such as DMAC and DMF.
Eastman Chemical, which is among the prominent chemical companies along with DowDuPont Inc. (DWDP - Free Report) , PPG Industries, Inc. (PPG - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) , witnessed higher profits in the third quarter of 2018. Results benefited from strong growth in its specialty businesses and cost management actions. Adjusted earnings were $2.34 per share for the quarter, up from $2.19 in the year ago-quarter. The figure also topped the Zacks Consensus Estimate of $2.29.
Eastman Chemical stated that strong volume gains in the specialty businesses, disciplined cost management and a lower effective tax rate helped it achieve adjusted earnings per share (EPS) growth of 13% year over year during the first nine months of 2018. The company continues to expect adjusted EPS growth for 2018 to be 10-14% year over year. It also expects to generate roughly $1.1 billion of free cash flow in 2018.
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