Eastman Chemical Co. has exercised its option to purchase Terra Industries Inc.'s Beaumont, Texas, assets, including methanol and ammonia production facilities. The two companies anticipate closing the sale on or before Jan. 1, 2009. Terms of the sale agreement were not disclosed.
Eastman will incorporate the assets into a previously announced $1.6 billion industrial gasification project it is developing in Beaumont. Mark Costa, senior vice president of Corporate Strategy, said Eastman will be the developer, operator, co-investor and a customer for that project. "Exercising this option brings Eastman one step closer to construction of a new gasification facility," Costa said. "We continue to meet our targets and remain on schedule."
Terra President and CEO Michael Bennett said, "We're pleased with this opportunity to divest these assets in a move that is consistent with our desire to focus on our core nitrogen business."
Terra Industries Inc., with 2006 revenues of $1.8 billion, is a leading international producer of nitrogen products.
Eastman Chemical Co. manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is one of the world's largest producers of PET polymers for packaging; and is a major supplier of cellulose acetate fibers.