KINGSPORT, Tenn. -- Eastman Chemical Co. has cancelled its previously announced plan to spin off its specialty chemicals and plastics business. The company announced its plan for the spin-off in February 2001. J. Brian Ferguson, Eastman's chairman and CEO, said the company will continue to operate under the divisional structure put in place at the first of this year.

"Our commitment to maximize value for our shareowners has not changed, especially in these challenging times for our industry and economy," Ferguson said. "The intent of the spin-off was to separate our businesses so that each could set its own course for growth, resource allocation and strategies. The work we did internally to separate the businesses last year has allowed us to set up a divisional structure that does just that, without splitting into two publicly traded companies." he added.

Under this structure, the Voridian Division contains Eastman's Polymers Segment, which includes PET polymers and polyethylene products, and the Fibers Segment. Eastman's Coatings, Adhesives, Specialty Polymers and Inks Segment; the Specialty Plastics Segment; the Performance Chemicals and Intermediates Segment; as well as the company's strategic initiatives in less capital-intensive businesses will comprise the rest of Eastman Chemical Co.