Eastman Chemical Company (EMN) said that it will start a consultation period regarding a proposal to close its acetate tow manufacturing facility in Workington, UK. The company’s plan to close the site is in accordance with the changes in global market demand for acetate tow.

With the recent increase in global acetate tow manufacturing capacity, Eastman believes that it now requires lesser capacity to supply. Eastman’s global acetate tow capacity is 210,000 metric tons, including the Workington site that produces 24,000 metric tons.   

Eastman stated that it will reliably supply all its customers with top quality products during and following this consultation process. The company has informed the trade union and will work with them as well as the employee representatives throughout the consultation period. The company stated that the decision to close the site is not related to the performance of the employees.

Recently, Eastman released its fourth-quarter 2014 results. The company topped earnings expectations in fourth-quarter 2014, but its profits slid as a sizable loss on pension and postretirement benefit plans more than offset a rise in its sales.   

Eastman’s profit (as reported) tumbled around 95% to $16 million or 11 cents per share in the quarter from $346 million or $2.22 per share logged a year ago.
 
Earnings, excluding pension/post-retirement benefit plans loss and other one-time items, were $1.64 per share, topping the Zacks Consensus Estimate of $1.54 and surpassing the year-ago adjusted earnings of $1.35 per share.

For 2014, adjusted earnings of $7.07 per share came ahead of the Zacks Consensus Estimate of $6.96.

Eastman said that it is well placed to gain in 2015 from its strong portfolio of specialty businesses and acquisitions made last year. The company, however, added that it is exposed to near-term challenges, such as an uncertain global economic environment, oil price volatility and headwinds from a stronger dollar.

Eastman Chemical is a Zacks Rank #4 (Sell) stock.
 
Some better-ranked chemical stocks include Compass Minerals International Inc. (CMP), Innophos Holdings Inc (IPHS) and Olin Corp. (OLN), all holding a Zacks Rank #1 (Strong Buy).