Eastman Chemical Company, through its Chinese subsidiary, Eastman (Shanghai) Chemical Commercial Co., Ltd., has entered into a long-term agreement with West Tech Chemical Ltd. under which West Tech will build and operate a manufacturing facility in YunFu, in China's GuangDong province, to produce rosin derivatives and resin dispersions to support Eastman's current and future customer needs in the Asia Pacific region.

Construction of West Tech's new plant is scheduled to be completed during the first quarter of 2006, with commercial production to begin immediately thereafter. When fully operational, the plant's annual capacity will be 5,000 metric tons for rosin derivatives and 5,000 metric tons for resin dispersions.

Products to be produced for Eastman at the new facility will include a range of rosin derivatives, including specialty esters based on polymerised rosins. The resin dispersions product line will include products targeted for use in pressure sensitive label applications and general pressure sensitive adhesives. The applications and markets for the rosin ester products include hot melt adhesives for bookbinding and packaging, and nonwoven construction adhesives.

West Tech was established in 2005 by Shengda Rosin Chemical Co., Ltd. of Guangzhou, China and Easefine Ltd., of Hong Kong, to produce polymerised rosin derivatives and resin dispersions. Eastman Chemical Company manufactures and markets chemicals, fibres and plastics worldwide.