James P. Rogers will continue to serve as chairman and CEO until January 1, 2014. He will then serve as executive chairman of the board. According to a statement from Eastman the transition is part of the board’s normal succession planning process.

“Being CEO of Eastman has been a great honor and truly one of the most rewarding experiences of my life,” Rogers says. “I am proud of what the entire Eastman team has accomplished over the past several years, and I have complete confidence that the company is well positioned to continue delivering consistent, superior value to our stockholders.

“I am pleased to pass the reins to Mark and our talented team of executives,” Rogers continues. “Mark is a proven leader who has been instrumental in developing and executing Eastman’s strategic plans for growth. I look forward to my continued service as executive chairman and to working with Mark to ensure a seamless transition.”

“I am honored to have been selected by the board of directors to lead Eastman as the next CEO and as a director,” says Costa. “I personally want to thank Jim for all that he has done for Eastman and for his incredible example of real leadership. I especially appreciate the opportunity to continue working with executive vice president Ron Lindsay and the rest of the executive team as we implement Eastman’s growth strategy.”

Costa currently heads the company’s Additives and Functional Products and Advanced Materials segments. He also serves as chief marketing officer and has responsibility for the company’s corporate innovation organization.

Speaking on behalf of Eastman’s Board of Directors, lead director Stephen R. Demeritt says, “Jim has courageously led Eastman through a time of tremendous change and we could not be more pleased with what he has accomplished as CEO. We look forward to his continuing contributions as executive chairman of the board.

“Eastman is fortunate to have a senior leadership team of incredible breadth and depth,” adds Demeritt. “We have tremendous confidence in Mark and the rest of Eastman’s executives to execute the company’s plans for growth and take Eastman to even greater success.”

As for growth in the window film sector of the company, Rogers and Costa both say they foresee further progress.

“Mark is going to be better than me at driving the organic growth,” says Rogers. “He’s very good at … developing products. Over the next few years, organic growth is going to be extremely important. That plays right to his strength … Mark was a leader in the acquisition of Solutia.”

“The integration [of Solutia] is going much better than I expected,” says Costa. “We’re seeing a number of opportunities to accelerate performance … especially in Interlayers and Performance Films. We’re continuing to find significant gains from Performance Films.”

“The enhanced technology center is Eastman’s commitment to developing capabilities and growth in Singapore and the region,” says Dr. Gregory W. Nelson, senior vice president and chief technology officer. “It also demonstrates Eastman’s dedication to sustainability and echoes Singapore’s sustainability blueprint for enhanced resource efficiency to help overcome resource limitation for growth.”

“Eastman’s newly completed Asia Pacific Technical Center allows the company to better support its customers’ evolving needs. Through its comprehensive presence in Singapore—from manufacturing to innovation and HQ activities—and by leveraging Singapore’s innovation capabilities and proximity to the consumer, Eastman will be able to develop innovative and sustainable solutions in Asia for Asia,” adds Eugene Leong, director for energy and chemicals at the Singapore Economic Development Board.

The Asia Pacific Technical Center also includes the Solutia Technical Services Team following the $4.8 billion acquisition of Solutia in 2012. The company says in a statement it plans to “further strengthen local headcount in the next few years to grow the Performance Films and Interlayers businesses in Asia Pacific” as part of what it calls “a diversified portfolio strategy for sustainable growth.”

“Damage from certain kinds of ultraviolet rays is cumulative,” says Dr. Dee Anna Glaser, vice chair of the dermatology department at St. Louis University. “These rays, called UVA rays, penetrate deep into the skin and can silently accelerate the aging process, cause wrinkles and even skin cancer.” Unlike UVB rays which create immediate effects like blistering and burns, UVA rays create long-term damage that is not immediately noticeable, according to Eastman.

“That’s why many people don’t realize their skin is getting damaged from sitting near windows in cars or even at their desks at work,” says Dr.  Glaser.

As part of the Skin Cancer Awareness Month initiative, Eastman is supporting the Skin Cancer Foundation’s Road to Healthy Skin Tour which strives to detect skin cancers early on and educate consumers on the methods of prevention and treatment. Local LLumar window film dealers are available during the tour, which starts May 14 in Hoboken, N.J., and runs through August 30 in Redwood City, Calif., to help explain the benefits of film for consumers looking to have “sunscreen for your car.”

“In many Asian countries, window film is in eight out of 10 cars and is something of a status symbol,” says Mark Gershenson, director, global LLumar brand management at Eastman. “We see a clear need for education in this area in North America. Skin cancer can be prevented and window film is one of the easiest ways to mitigate the risks.”

Advanced Window Solutions was named the Vista Dealer of the Year.
Pictured from right: Keith Carter, Eastman territory manager; Marc Vitaliani, Advanced Window Solutions co-owner; Darrell Reed, Eastman commercial director; Ross Jurman, Advanced Window Solutions co-owner.

Advanced Window Solutions of Cortlandt Manor, N.Y. was named National Dealer of the Year for the second time. Co-owners Ross Jurman and Marc Vitaliani accepted the award presented by Keith Carter, Eastman territory manager. Advanced Window Solutions was chosen from more than 350 dealers in the Vista dealer program. The award was based on several criteria, including dealer loyalty and growth. Advanced Window Solutions has been a Platinum Vista partner for 12 years. In 2012, they sold and installed the largest EnerLogic® window film project on the East Coast, according to a statement from Solutia.

“We are proud to represent the Vista window film brand which stands for quality and excellence,” said Ross Jurman, co-owner of Advanced Window Solutions, LLC.  “We credit our business success to the excellent customer service provided to both our residential and commercial clientele.  We are honored to be recognized as National Dealer of the Year again in 2012.”

In addition to awarding National Dealer of the Year, Eastman also awarded six Regional Dealers of the Year:

• Southeast region – Solar Insulation of Nashville, Tenn.
• Midwest region – Solar Solutions of Westerville, Ohio
• Western region – The Tint Pros of Huntington Beach, Calif.
• Texas region – A1 Glass Coating of Universal City, Texas
• Canadian region – Spectra Light Window Films of Calgary, Alberta

Eastman claims it is the only chemical company to have the distinction of being named Energy Star Partner of the Year more than once.

“Recognition as Energy Star Partner of the Year for the second consecutive year is truly an honor,” says Jim Rogers, chairman and chief executive officer of Eastman. “Energy efficiency is one of the global macro trends challenging the world and Eastman is addressing this challenge through sustainable solutions that include our own emissions reductions and energy efficiency efforts, as well as the development of products that enable consumers to reduce emissions. We are proud of Eastman’s partnership with Energy Star and our energy management achievements.”

“Being named a 2013 Energy Star Partner of the Year is confirmation of Eastman’s unwavering commitment to sustainability and energy savings,” says Jeremy Verstraete, global brand and segment manager, architectural.  “It is rewarding to see our efforts recognized by prestigious third parties.”

The Energy Star program provides a proven energy management strategy that has helped Eastman achieve reductions in energy use and greenhouse gas emissions. Eastman notes that its accomplishments include:

• Improvement in energy intensity by 2.5 percent in 2012 and 7 percent since 2008.
• Energy savings in 2012 equal to $8 million and 340 million pounds of greenhouse gas emissions (equal to emissions from 28,000 cars).
• Receipt of American Chemistry Council (ACC) energy-efficiency awards for seven projects saving over 483,000 MM BTUs and 40,000 tons of greenhouse emissions annually.

• ACC recognition of Eastman’s Energy Program with an Exceptional Merit Award.
• Identification of more than $7 million in savings opportunities since 2010 using an energy assessment process.
• Creation of a corporate-wide best practices program focused on steam leak repair, which along with an investment of over $2 million for repairs, resulted in an excellent average payback period of six months.
• Placement in the top five of the business sector for the Energy Star pledge driver campaign ending on Earth Day 2012 with pledges totaling more than 16 million pounds of greenhouse gas emissions savings.
• Expansion of the corporate energy team from 10 to 16 manufacturing sites as a result of acquiring Solutia Inc.
• Increased employee and public awareness of Energy Star and the importance of energy efficiency through a company energy fair, participation in EPA’s Battle of the Buildings, and involvement of the corporate headquarters’ city mayor in declaring Energy Star day, and other outreach efforts.

“Superior energy management is our most cost-effective climate strategy and Eastman continues to exemplify leadership in this category,” says Bob Perciasepe, Acting EPA Administrator.

“Energy efficiency is a global macro trend that Eastman is addressing through the development of products that enable consumers to reduce emissions, as well as through our own emissions reductions and improved efficiency efforts,” says Verstraete.

“Window film has been shown time and time again to be an effective green product – saving energy and reducing emission of greenhouse gases, in both homes and businesses,” says Verstraete.

“This announcement exemplifies one major film manufacturer’s commitment to sustainability and energy efficiency and to be a good global steward for the environment,” he adds.

EPA’s annual Energy Star Awards honor organizations it deems as having made outstanding contributions to protecting the environment through superior energy efficiency. Award winners are selected from nearly 20,000 partners participating in the Energy Star program and will be recognized at an awards ceremony in Washington, D.C., on March 26, 2013.

Eastman Chemical Co. officials consider the recent acquisition of Solutia Inc. of St. Louis, an important step in Eastman’s strategy to extend its global presence in emerging markets, in particular in Asia Pacific, says Tracy Broadwater, corporate communications manager of Eastman. “By leveraging infrastructure in the region, Eastman expects to have a compound annual growth rate in Asia Pacific approaching 10 percent for the next several years,” she says. 

Solutia is a manufacturer of performance materials and specialty chemicals, primarily in the construction, transportation, energy and manufacturing markets.

The time was ripe for the acquisition, Broadwater says. “Solutia is a good investment that is well-managed with well-established businesses,” she says. “Eastman has been aggressively pursuing a growth strategy, and acquisitions have been an important part of that strategy. We have made a number of acquisitions over the past two years, and though this is the largest of those, we are approaching this acquisition from a position of strength.” 

None of those acquisitions were in the glass and glazing industry, Broadwater clarifies. 

Currently, Eastman is one of the largest companies in its field with a combined EBITDA margin of approximately 20 percent and an EBITDA of approximately $1.8 billion. “This acquisition will strengthen Eastman as a top-tier North American chemical company,” Broadwater says. 

Regarding changes at Solutia as a result of the acquisition, Broadwater says “recognizing that we haven’t even closed on the deal at this point, it would be premature to comment until we are further in the process.” The transaction is expected to close in mid-2012. “Due to the size of this acquisition we expect a great deal of our focus will be spent integrating Solutia into Eastman,” she says. “However, we expect to continue to evaluate appropriate opportunities for expansion on a number of fronts, including emerging markets, access to feedstock, differentiated products or markets and sustainability, which have been Eastman’s key focus areas for M&A [marketing and analysis] opportunities.”

The transaction also is “expected to deliver immediate value to our stockholders in the form of accretion and strong cash generation, as well as create potential upside through the combination of two leading global chemical companies,” says Jim Rogers, chairman and CEO of Eastman, in a company release. Under the terms of the agreement, Solutia stockholders will receive $22 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. Based on recent closing prices, Solutia shareholders will receive cash and stock valued at $27.65 per Solutia common share, representing a premium of 42 percent and a total transaction value of approximately $4.7 billion, including the assumption of Solutia’s debt.