By Dan McCue
Staff Writer

MeadWestvaco Corp. this morning announced its acquisition of the Eastman Chemical Co.’s pine chemicals product line and its intention to shift an unspecified amount of work currently being done at Eastman’s Franklin, Va., plant to Charleston.

The deal is expected to close by the end of February, according to a written statement from the company. No financial figures related to the transaction have been disclosed.

The acquisition of Eastman Chemical’s tall oil rosins and tall oil fatty acids product lines, will expand MeadWestvaco’s Specialty Chemicals’ Performance Chemicals business. The company operates specialty chemical plants in Charleston and in DeRidder, La.

Ricki Carruth, a spokeswoman for MeadWestvaco, said the manufacturer is acquiring intellectual assets of Eastman, rather than physical assets, and that no employees will be transferred between the companies.

She said that while the deal will expand MeadWestvaco’s business, the company believes its current production capacity and production team will be able to absorb the new work.

“This agreement will make our business operations in Charleston stronger and more profitable,” she said. “While our overall goal, of course, is to continue to grow the business, we don’t anticipate an increase to the size of our staff at this time.”

Tall oil, also called liquid rosin or tallol, is a byproduct of wood pulp manufacture. Crude tall oil is distilled to obtain tall oil rosin and tall oil fatty acid. The rosin is used in adhesives, rubbers and inks and as an emulsifier. The pitch is used as a binder in cement, as an adhesive and as an emulsifier for asphalt.

The fatty acid is a low-cost alternative to tallow fatty acids for production of soaps and lubricants. It is also used in adhesives and oil-based varnishes. Tall oil is also used in oil drills. The products are also used in paints, coatings and building materials.

As part of the deal, MeadWestvaco is acquiring all intellectual property and technology associated with Pamite tall oil rosins and Pamak tall oil fatty acids.

“This acquisition underscores our commitment to achieving sustainable, profitable growth in Specialty Chemicals,” said Ed Rose, vice president of MeadWestvaco’s Specialty Chemicals’ Performance Chemicals division, in a written statement. “The integration of the Pamite and Pamak technologies into our world-class refineries will allow us to continue to enhance our manufacturing efficiency and provide unparalleled value and innovation to our customers.”

Eastman work not relocated to Charleston will be shifted to MeadWestvaco’s other specialty chemicals plant in DeRidder, La.

MeadWestvaco currently employs about 1,500 in the Lowcountry. Of those, about 280 work in its specialty chemicals division.