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Qilu Eastman Begins Construction

November 14, 2005

CHINA: Qilu Eastman Specialty Chemical Ltd. (QESCL), a joint venture between Sinopec Qilu Petrochemical Company and Eastman Chemical Ltd., began construction of a world-scale plant in Zibo to produce Texanol ester alcohol and TXIB plasticizer.
The plant is scheduled for completion in October 2004, with commercial production starting December 2004.
“QESCL will enhance Eastman’s global capacity for Texanol ester alcohol and TXIB plasticizer and provide us with a more competitive position on derivative technology currently being imported to China,” said David Brubaker, vice president, Eastman Chemical Company.
Mr. Brubaker added, “We will leverage Sinopec Qilu’s position as a leading producer with a strong raw material position and excellent site management for large-scale operations to produce oxo derivatives more competetively for the China market.”
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