Invista Restructuring Delaware Nylon Plant

Seaford, DE, Oct. 15, 2008--Invista says it plans to lay off 400 of the 500 workers at its nylon plant in Seaford by the middle of next year.

Invista spokesman Roger Ramseyer said Tuesday that restructuring at the nearly 70-year-old plant won't start until next year, but the company wanted to give employees and the community as much notice as possible.

Invista said it plans shift most carpet fiber manufacturing to plants in the U.S. and Canada while Seaford narrows its focus to industrial nylon staple fiber.

Centralized supply to the carpet industry will continue to flow through the company’s warehouses in Chattanooga, Tenn. When the restructuring is complete, Invista's Seaford site will have a focused mission of producing nylon staple fiber for technical applications such as military apparel, conveyer belts used in paper manufacturing, and other specialty products.

“Invista remains committed to the long-term growth of its nylon polymer and carpet fiber businesses,” said Dan Stone, president of Invista Performance Surfaces & Materials.

“We want to make it clear to our customers that we do not have any plans to exit the business. We are restructuring to strategically place our manufacturing sites on the best platform possible as we evolve more efficient ways to satisfy future demand.”

Many carpet mills are shifting preference away from the type of staple carpet fiber manufactured at Seaford and toward bulked continuous filament (BCF) carpet fiber. This shift in demand, when combined with the burden of Seaford’s large infrastructure, has created challenges that cannot be overcome without significant action, the company said.

 “By making this step-change in business operations, we create an opportunity to capture volume for other Invista sites, be more competitive and create long-term value for our customers,” said Stone.

The restructuring will focus on a part of the business that has been more successful, making a type of industrial fiber used in military apparel and conveyer belts used in paper-manufacturing. Ramseyer says the company will convert the plant to natural gas, from coal, at a cost of more than $15 million.

Wichita, Kan.-based Koch Industries, Invista's corporate parent, acquired the plant in 2004 when it bought DuPont Co.'s fibers and textile business.