KODAK <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.