Eastman Chemical announced plans to discontinue production of all grades of propylene glycol and its derivatives.

KINGSPORT, TN — Eastman Chemical Co. announced plans to discontinue production of all grades of propylene glycol and its derivatives, effective Dec. 31, at the company’s facilities in South Charleston, WV. The move is based on raw-material and conversion costs that “make it unattractive to continue these operations,” said Eric DeLoach, director, Coatings Specialties and Solvents. Eastman acquired the South Charleston facility from ARCO Chemical Co. in 1992.

The plant, located in Union Carbide Corp.’s manufacturing complex at South Charleston, is operated under a general service agreement with Union Carbide. Eastman said propylene glycol storage terminals in Texas, Tennessee, Illinois, and New Jersey will be converted to store other Eastman products.