KODAK &lt;EK> TO CUT POLYESTER FIBER OPERATIONS

  Eastman Kodak Co said it will
  reduce capacity and employment levels in two polyester fiber
  operations of its Eastman Chemicals division.
      A company spokesman said the company will take "some
  writeoff" in connection with the action in the first quarter
  and there will probably be a further "carryover" writeoff in
  the second quarter.  The writeoffs will cover the costs of
  plants and equipment involved, as well as expenses connected
  with the staff cuts.
      Kodak said the division will discontinue production of
  polyester partially-oriented filament yarn, or POY, at its
  Carolina Eastman Co plant in Columbia, S.C., and will idle 100
  mln pounds of older polyester staple fiber production capacity,
  mostly in Columbia.
      The company said about 350 jobs will be affected in
  Columbia, most of which are now performed by contract workers,
  and about 225 jobs at its Tennessee Eastman Co plant in
  Kingsport, Tenn.
      Kodak said part of the staff reduction will be achieved
  through an enhanced voluntary separation and retirement plan
  for employees of Carolina Eastman, Eastman Chemical Products
  Inc and other Kodak units in Kingsport, except Holsten Defense
  Corp. Most of the workforce reduction is expected to be
  completed by April 30.
      Kodak said depressed prices and poor financial performance
  have led to the decision. It said about 50 mln pounds of POY
  production will be shut down as a result of its exit from the
  business. All Kodak POY production has been at Carolina Eastman
  since last year.
      The company said annual capacity for production of Kodel
  polyester staple fiber will be reduced to 400 mln pounds from
  500 mln due to lesser demand.
      It said it will proceed with a previous decision to phase
  in a new 100 mln pound staple fiber plant at Carolina Eastman.
      Carolina Eastman employs about 1,350 and the Kingsport
  units affected about 10,800.
      The company spokesman later said the charges will be
  insignificant and will have no impact on earnings estimates.
  

