Kingsport

Report: Financial impact of Eastman explosion between $50 and $100M

Last week's explosion at a coal gasification plant at Eastman Chemical in Kingsport could result in a financial impact between $50 and $100 million, the company announced Monday. 

That update was included in a full-year 2017 earnings expectations report that noted Eastman's third quarter earnings were "strong across the company and are expected to continue into the fourth quarter" with earnings per share anticipated to increase over 2016 figures.

While the impact of Hurricanes Harvey and Irma will be minimal, the Oct. 4 "operational incident" forced the company to put alternate processes in place to maintain operations while repairs are made to the plant. The monetary loss of the blast is just preliminary, Eastman noted, while the company continues to explore whether damages can be used with property and business interruption insurance.

Jared Drive remains closed to traffic near the plant while all areas of Kingsport's operations return to normal.


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