In a press release on May 28, Eastman Chemical (EMN) announced that it will expand the production of its Impera resins. The resins are used to manufacture tires. The expansion is expected to take place at the manufacturing facilities in Middelburg, Netherlands, and Jefferson, Pennsylvania. However, Eastman Chemical didn’t mention the amount of investment that will be made for the expansion. The company didn’t provide the timeframe for completing the expansion.
The expansion is expected to be 10%–15%. The expansion will help meet the growing demand from tire manufacturers across the world. Gunes Celik, the vice president and general manager of Eastman’s Tire Additives segment, said, “As consumers and OEMs continue to raise expectations for higher performing tires, tire makers are responding by pushing the boundaries of tire technology. Impera performance resins have become a preferred technology to enable improvements in fuel economy, tire performance and tread life. These investments will allow Eastman to continue to support the growing needs of leading tire makers and expand on our position as a key innovator in the tire industry.”
Eastman Chemical’s stock price
On May 28, Eastman Chemical stock fell 1.3% and closed at $67.89. On a year-to-date basis, the stock has fallen 6.1%. LyondellBasell (LYB) and Westlake Chemical (WLK) have fallen 6.5% and 6.9%, respectively, while Celanese (CE) has gained 11.3%. The S&P 500 (SPY) has risen 12.7% during the same period.