US chemicals firm to axe Cumbrian site

A US chemical manufacturer is closing a manufacturing site in Cumbria with the loss of more than 150 jobs.
 
Eastman Chemical Company, said its acetate tow manufacturing site in Workington would cease production next month and be closed by “in the third quarter”.

The group, headquartered in Kingsport, Tennessee, blamed falling demand for acetate tow, which is a raw material used in cigarette filters, for the closure.

The company, which is listed on the New York Stock Exchange said the Workington site has 24,000 metric tons of acetate tow manufacturing capacit and its closure would save it $20m annual operating costs.

Linda Hensley, vice president and general manager of the group’s Fibers division said: “With changes in global market demand and recent and announced global acetate tow manufacturing capacity additions, we need less capacity to supply our customers.

“We have been working with our customers throughout this process and remain committed to reliably supplying them with top quality products.”

Eastman will continue to manufacture acetate tow at its facilities in Kingsport and Korea. In addition, Eastman has a joint venture with China National Tobacco Company in Heifei, China.

Hensley added: “This was a difficult decision because it impacts team members who have made valuable contributions to our company. Eastman’s decision to close the Workington plant is not a reflection of the performance of the employees who work at the site and we will be doing all we can to support employees to ensure they are treated with the respect they deserve.”