Eastman's Specialty Chemicals Should Benefit From Long-Term Demand Growth Despite Near-Term Slowdown

Through acquisition and internal development, Eastman owns a solid portfolio of specialty chemicals. Eastman's specialty chemicals include plastics and components used in safety glass, window tinting, and specialty plastics, all of which offer a solid growth profile. To increase its specialty portfolio, the firm invests roughly 4% of sales from its additives and functional products and advanced materials segments into research and development, which is in line with its specialty chemical peers. Eastman is well positioned to meet growing demand for auto window interlayers, including heads-up displays, and specialty plastics.