f8k1312007
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15 (d) of the Securities and Exchange Act of
1934
Date
of report (Date of earliest event reported):
January
25, 2007
EASTMAN
CHEMICAL COMPANY
(Exact
Name of Registrant as Specified in Its Charter)
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Delaware
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1-12626
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62-1539359
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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200 South
Wilcox Drive, Kingsport, TN
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37660
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(423) 229-2000
(Registrant’s
Telephone Number, Including Area Code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
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EASTMAN
CHEMICAL COMPANY - EMN
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January
31, 2007
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Item
2.05 - Costs Associated with Exit or Disposal Activities and
Item
2.06 - Material Impairments
On
January 25, 2007, Eastman Chemical Company decided to initiate the closure
of
its non-integrated PET polymers site in San Roque, Spain. As previously
disclosed, the Company has been evaluating various strategic options that
include restructuring, divestiture or consolidation of its non-integrated
PET
manufacturing assets outside the United States. After evaluating the various
alternatives, the Company decided to initiate the actions required to
permanently shut down the San Roque site due to an untenable labor situation.
This decision will impact approximately $45 million of net assets associated
with this site and could lead to non-cash impairment charges in the first
quarter of 2007. In addition, this decision could result in restructuring
charges, primarily severance, which would result in future cash expenditures.
The restructuring charges are not expected to exceed $10 million, but are
subject to negotiation with third parties. Management expects the underlying
costs of and charges related to this decision to be reported as asset impairment
and restructuring charges during the first quarter of
2007.
EASTMAN
CHEMICAL COMPANY - EMN
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January
31, 2007
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
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Eastman
Chemical Company
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By:
_/s/__ Curtis E. Espeland _____________
Curtis
E. Espeland
Vice
President and Chief Accounting Officer
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Date: January
31, 2007
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