Westlake Offers Comment Eastman Complaint, Says Does Not Agree with Position
Westlake Chemical Corporation (NYSE: WLK) today stated that it received on July 30, 2013, a copy of a complaint filed by Eastman Chemical Company (NYSE: EMN) with the Texas Railroad Commission regarding Westlake's pipeline that transports ethylene between Mont Belvieu, Texas, and Longview, Texas, where both Westlake and Eastman have operating facilities. In its complaint and related public statements to the media and investors, Eastman contends that recent changes made by Westlake to the pipeline tariff and the terms and conditions of the pipeline usage, cost and service, were made to delay the divesture of some of Eastman's ethylene cracking units and would also impact its production capacity in Longview, Texas. Westlake noted that it plans to respond to Eastman's complaint to the Texas Railroad Commission as required.
Westlake does not agree with Eastman's position as outlined in its complaint. The changes made to the pipeline tariff were made in accordance with standard practices and reflect market conditions and were in no way intended to impact Eastman's operation of its facilities in Longview nor were these changes made to delay Eastman's divesture efforts. Westlake is committed to continued long-term safe operation, support for the employees and investment at the Longview site.
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