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News/updates

Eastman Announces Third-Quarter 2017 Financial Results

Eastman Updates Full-Year 2017 Earnings Expectations Including Preliminary Expectations of Impact of Kingsport Operational Incident

Oct. 4, 2017 Media Briefing

Incident Updates

 

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Recovery Q&A

We expect to be operable by the end of fourth quarter 2017.
We expect the coal gasification area to be operable by the end of fourth-quarter 2017. This, along with our mitigating actions, is expected to enable full production of acetyl chemicals and derivatives. Normal operations are expected to resume in early 2018.

Safety is a priority as we conduct our discovery work and it takes time to determine what exactly needs to be repaired. To expedite the process in other ways, we are:
  • ordering replacement equipment ahead of time, expecting that we might have to take delivery of unneeded equipment or pay cancelation fees.
  • hiring contractors and have them on-site and ready for assignments rather than waiting to identify a need and then going out to find contract help.
  • fully utilizing our first-class on-site mechanical repair capability and are activating those teams and capabilities in this repair
Due to the unique advantages of our scale and integration, the company has made excellent progress in repairing the facility and implemented alternate processes to maintain operations of downstream derivative facilities of coal gasification. We expect the coal gasification area to be operable by the end of fourth-quarter 2017. This, along with our mitigating actions, is expected to enable full production of acetyl chemicals and derivatives. Normal operations are expected to resume in early 2018.
We have contingency and business continuity plans in place to address an unplanned outage. Some parts of those plans include:

  • strategic amounts of inventory;
  • alternate assets for production;
  • alternate sources for acetyls;
  • and the spare parts, fabrication capability and construction resources within the company to rebuild at a rapid rate.
Areas of the manufacturing facility have returned to normal operations except coal gasification operations. The company is putting alternate processes in place to maintain operations of all downstream derivative facilities of coal gasification as repairs are being made.
No, this is not true. We are aggressively working to safely repair and restart our coal gasification facility. There are rumors in the marketplace and those rumors are not factual. We expect the coal gasification area to be operable by the end of fourth-quarter 2017. This, along with our mitigating actions, is expected to enable full production of acetyl chemicals and derivatives. Normal operations are expected to resume in early 2018.
Manufacturing sites outside of Kingsport continue to operate as planned.
Those who have been impacted by this incident have been contacted by their sales representative.
While the company continues to assess the financial impact of the incident including the applicability of property and business interruption insurance, the incident is preliminarily expected to impact operating earnings by between $50 and $100 million, mostly in fourth quarter 2017.
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