Eastman sells polyethylene unit to Westlake

Eastman Chemical is selling its polyethylene business to Westlake Chemical for $255 million. Included in the deal is capacity for 700 million lb per year of low-density polyethylene and 425 million lb per year of linear low-density polyethylene in Longview, Texas. Upon close of the deal, expected later this year, Westlake will have a total annual polyethylene capacity of 2.5 billion lb. Westlake already has polyethylene facilities in Lake Charles, La. The Eastman polyethylene business generated annual revenues of about $680 million in 2005. Also included in the deal is a 200-mile-long ethylene pipeline between Mont Belvieu, Texas, and Longview as well as Eastman's Epolene polymers for adhesives and coatings. The companies say Eastman's Longview ethylene cracker operations will continue to run but with a staged phase-out of older units starting next year.