Chattanooga, TN, May 20--Invista, a nylon and Lycra manufacturer, will cut at least 175 employees at its North Access Road plant in Hixson, company officials said, according to the Chattanooga Times/Free Press.
The move means the Chattanooga site, operated by DuPont for 55 years until three weeks ago, will lose 25 percent of its 700 workers, Invista spokeswoman Cheryl Parker said.
The company also will cut an unspecified number of 300 contract employees, she said.
Invista, which was bought by privately held Koch Industries on April 30, is shutting down part of the plant's nylon production. The downsizing is expected to involve both production employees and management, Ms. Parker said.
"It's across the site," she said.
The changes reflect a shrinking of Invista's regional customer base, according to the company.
The local plant makes nylon and Lycra for apparel, military parachutes and other uses. Mill customers have reduced the need for fibers as apparel production goes overseas, particularly to Asia, company officials said.
Ben Melnyczuk, Invista's Chattanooga plant manager, said the reality of restructuring the facility along with other Invista operations isn't new.
"We must take these difficult steps to ensure success and realize long-term viability of the site," he said.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's marketing director, said officials hate to see the jobs go.
"We realize that in order for the business to be viable, sometimes a company has to shift strategy and reduce the work force," he said.
Invista was DuPont's textiles and fibers operation when it was sold to privately held Koch for $4.2 billion. Invista, with a presence in 50 countries, has 18,000 workers worldwide.
Invista officials said the production of Lycra and performance fibers such as Cordura will not be part of the phase-out in Chattanooga.
The restructuring decisions come as Invista tries to cut costs and make the company more competitive, they said.
"There are changes occurring from a business standpoint," said Ms. Parker, adding that company officials are looking at the marketplace and customer demand.
Mr. Marston said the Chamber offers services to companies that downsize if the businesses seek them. Chamber employees go in and orient workers about training opportunities and career placement opportunities, he said.
The Chattanooga plant employed more than 5,000 workers in the late 1970s but has seen a series of job cuts over the past three decades. Still, DuPont spent an estimated $200 million in upgrades to the facility within the last six years.
DuPont maintains about 80 employees in an engineering polymer operation in the Chattanooga plant. Also, a joint venture between DuPont and Sabanci International that makes nylon for auto tires employs some 350 workers.
DuPont officials decided to exit the textile and fibers business because the line was considered its least profitable.
