8-K

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):

September 14, 2007 

EASTMAN CHEMICAL COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-12626	62-1539359
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

200 South Wilcox Drive, Kingsport, TN	37660
(Address of Principal Executive Offices)	(Zip Code)

(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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

EASTMAN CHEMICAL COMPANY - EMN      September 17, 2007   

Item 2.06 – Material Impairments

As previously reported, the Company has been evaluating various strategic options that include restructuring, divestiture or consolidation of its PET manufacturing assets outside the United States.

On September 14, 2007, Eastman Chemical Company entered into an agreement to sell its non-integrated PET polymers manufacturing sites in Cosoleacaque, Veracruz, México and Zarate, Argentina and related polyester resin business to ALFA, S.A.B. de C.V.  The Company's press release announcing the agreement to sell these assets is included as an exhibit to this filing.  The sale is subject to customary conditions to closing, including regulatory approvals, and is expected to be completed in fourth quarter 2007.  Management expects non-cash asset impairments and restructuring charges of up to $90 million, net of tax, to be recognized in third quarter 2007.

In addition, the Company continues to make good progress on strategic actions for the remaining PET manufacturing facilities outside the United States.  The Company does not expect asset impairments and restructuring charges related to these actions, but if charges are recognized, expects that they will not be material.

Exhibit 9.01 (d)

The following exhibit is furnished pursuant to Item 9.01(d):

Press Release 

EASTMAN CHEMICAL COMPANY - EMN    September 17, 2007  

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.

Eastman Chemical Company 

By:   /s/ Curtis E. Espeland­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

 Curtis E. Espeland

 Vice President and Chief Accounting Officer

Date: September 17, 2007

EX-9.01(D)

ALFA to Buy Eastman's PET Polymers Business, Assets in Latin America

Monterrey, N.L. Mexico, and Kingsport, Tennessee, USA [Sept. 17, 2007]-- ALFA, S.A.B. de C.V. (ALFA), the leading Mexican industrial company, announced today it has entered into definitive agreements with Eastman Chemical Company (NYSE:EMN) to acquire PET polymers production facilities in Mexico and Argentina and the related businesses.  Terms of the transactions, which are expected to close during the fourth quarter of this year, were not disclosed.

“This acquisition is another step forward in our strategy of reinforcing the competitive position of our businesses and will allow us to better serve our customers in the growing Latin American markets,” said José de Jesús Valdez, president of Alpek, ALFA’s petrochemical unit. “We are buying modern production facilities. Furthermore, the Mexican plant is next to our PTA facility, thus allowing us to capture valuable synergies. In Argentina, a country of strategic importance for ALFA, we enjoy logistic and access advantages for our PTA, a key raw material for PET production," he added.

Gregory O. Nelson, Eastman executive vice president and polymers business group head, said, "Eastman is taking a number of actions to improve the financial performance of its overall PET polymers business. The sale of these non-integrated assets is an important element of that effort."

The sale, which is subject to customary approvals, includes Eastman's PET manufacturing facilities in Cosoleacaque, Veracruz, México, and Zárate (close to Buenos Aires), Argentina. Their production capacity is 150,000 and 185,000 metric tons per year, respectively.

About ALFA

ALFA is a Mexican company consisting of four business groups: Alpek (petrochemicals), Nemak (high-tech aluminum auto parts), Sigma (refrigerated food), and Onexa (telecommunications). Worldwide, ALFA is one of the leading producers of cylinder heads and blocks, and PTA. In Mexico, ALFA is the leader of the processed meats market. In 2006, ALFA reported revenues of U.S.$6,858 million, including foreign sales of U.S.$2,998 million and assets of U.S.$6,844 million. Currently, ALFA has manufacturing operations in 16 countries and employs more than 48,000 people. ALFA shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American stocks in the Madrid Stock Exchange.

About Eastman

Eastman manufacturesand 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. As a Responsible Care® company, Eastman is committed to achieving the highest standards of health, safety, environmental and security performance. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2006 sales of $7.5 billion and approximately 11,000 employees. For more information about Eastman and its products, visit www.eastman.com.

For further information:

ALFA:

Enrique Flores

VP Corporate Communications

+ 52 81 8748 1207

eflores@alfa.com.mx

Eastman:

Investors:

Greg Riddle, 212-835-1620, griddle@eastman.com

Media:

U.S.--Martha Lawson, 423-229-6574, mglawson@eastman.com

Mexico—Eneas Mares, Rapoport Creativos,  (525-5) 52 49 63 45, emares@ixp.com.mx

Argentina-- Jorge R. Basso Dastugue, Jr. (jbasso@bassodastugue.com.ar) or

      Sylvina Beleniski (sylvinab@bassodastugue.com.ar), Basso Dastugue & Associados

      (54 11) 4788-0119 / 0153 / 0169