EASTMAN CHEMICAL TO LAUNCH ACETYL JOINT VENTURE IN VENEZUELA

EASTMAN CHEMICAL TO LAUNCH ACETYL JOINT VENTURE IN VENEZUELA

Eastman Chemical Co., a division of Eastman Kodak Co., and Petroquimica de Venezuela SA, the petrochemical subsidiary of Petroleos SA, have signed a letter of intent regarding a world-scale plant for the production of up to 250,000 metric tons a year of acetic acid.

The plant, to be located in Jose, Venezuela, will offer a significant cost advantage due to the combination of Eastman acetyl technology and readily available natural gas feedstock, the companies said. Output from the plant will satisfy South American demand for acetic acid and will also be marketed throughout the world.Ed Horton, vice president of Eastman's Industrial Intermediates Business Organization, said "Eastman is committed to the worldwide acetyl market and this proposed project will support both that commitment and our strategic direction."

Antonio Ortiz, a member of the Pequiven board, said the acetic acid project is an important step in Pequiven's plans to develop fully its oxygenated products, based on Venezuela's privileged position regarding derivatives of natural gas.