Methanolysis Plant EBITDA Impact
Q: What is the expected EBITDA contribution from the methanolysis plant in 2025?
A: Eastman anticipates that the methanolysis facility will generate over $150 million in annual EBITDA by 2025 if the startup and ramp-up proceed smoothly.

CapEx and Inflation for Plants 2 and 3
Q: How are you managing CapEx estimates amid inflation for plants 2 and 3?
A: Despite inflation raising capital costs, Eastman plans to control CapEx by replicating the same plant design, incorporating learnings from Kingsport, and securing incentives in France and the U.S. The projects are still expected to deliver returns above 12% even with higher costs.

Advanced Materials Segment Upside Potential
Q: Is there a path to $500 million or more EBITDA in Advanced Materials?
A: With volume recovery, the end of destocking, seasonal demand returning, and the methanolysis plant adding $50 million in EBITDA, there's potential to exceed the $450 million guidance. Management is cautiously optimistic but prefers to see market recovery first.

Pricing and Margin Outlook
Q: How is Eastman's pricing ability and margin outlook for 2024?
A: Eastman expects to maintain margins in Advanced Materials (AM) and Additives & Functional Products (AFP), with spreads similar to last year. Modest price reductions may occur due to improved raw material and energy costs, but volume recovery and capacity utilization are key earnings drivers.

Destocking Impact and Demand Stabilization
Q: Are you seeing demand stabilization and end of destocking?
A: Destocking appears to be over in many markets, providing a tailwind of about $150 million, with 2/3 of that in Advanced Materials. Primary demand is stabilizing, and normal seasonal patterns are expected to improve volumes starting in the second quarter.

Timing of Methanolysis Plants 2 and 3
Q: When will plants 2 and 3 be operational?
A: Construction on plant 2 in France is expected to begin in late summer, with operational start dates around 2027. Eastman aims to incorporate learnings from Kingsport before proceeding.

Fibers Contracts and Earnings Visibility
Q: How much visibility do you have into Fibers contracts' pricing and cost through 2026?
A: Eastman has contracts covering both price and cost for 90% of 2025 and 70% of 2026 volumes. Pricing adjusts based on energy and raw material changes, providing confidence in earnings stability.

EV Market Exposure and Growth
Q: Is the outperformance in EV-related products decelerating in 2024?
A: While year-over-year improvement may be slightly less due to slower EV growth, Eastman continues to win new applications and penetrate EV accounts. Growth in premium products remains meaningful, helping the company outperform a flat automotive market.

Productivity Gains Outlook
Q: Can you achieve further productivity gains in 2025–2026?
A: Eastman expects ongoing productivity gains to offset inflation but not significant additional step-ups. The focus will be on volume recovery and fixed-cost leverage in specialty products to drive earnings growth.

M&A Landscape
Q: Are you more incentivized to pursue M&A targets now?
A: Eastman remains disciplined and is focused on executing its organic growth program. However, there may be better opportunities for bolt-on acquisitions in AFP and AM as the business environment improves.