ETF News

UPDATE 1-Eastman Chemical mulls sale of PET business

* PET business makes plastic packaging

* Unit faces ‘significant headwinds’

NEW YORK, April 23 (Reuters) - Eastman Chemical Co EMN.N said on Friday that it might put its struggling plastic packaging business up for sale.

Eastman said it would review its options for the PET resins business. The product is used to make plastic bottles for hot and cold beverages, such as coffee, wine and soft drinks.

The Kingsport, Tennessee-based company warned during its 2009 investor meeting that its North American PET business faced “significant headwinds,” including an oversupplied market and shift in consumer behavior.

Eastman has already sold its PET businesses in Europe and Latin America.

The company does not break out figures for PET sales. However, in quarterly earnings posted Thursday, Eastman said its Performance Polymer division, which contains the PET business, saw sales jump 22 percent and volume rise 6 percent during the first quarter. [ID:nN22240392]

Bank of America Merrill Lynch BAC.N is advising Eastman during the review. (Reporting by Ernest Scheyder; Editing by Lisa Von Ahn)