As part of its plan to grow its non-phthalate plasticiser capacity, Eastman Chemical (Kingsport, Tennessee / USA; www.eastman.com) not only plans to discontinue some of its ortho-phthalate plasticisers (see Plasteurope.com of 23.03.2011), the group recently announced that it had signed a definite merger agreement to acquire fellow North American petrochemical company Sterling Chemicals (Houston, Texas; www.sterlingchemicals.com). Valued at USD 100m, the transaction still has to meet the approval of the relevant regulatory authorities and is expected to be accretive to Eastman’s full-year 2012 report.

The deal includes Sterling’s plasticiser and acetic acid manufacturing facilities in Texas City. Eastman plans to revamp and restart the former to start producing non-phthalate plasticisers, including the “Eastman 168” grade. According to group estimates, the North American and European non-phthalate plasticiser markets are expected to grow at a compounded annual growth rate of about 7% over the next five years. In acquiring Sterling, Eastman’s Performance Chemicals and Intermediates business segment hopes to capture this rising demand.