Solutia to Close Industrial Nylon Fiber Unit in Pe
St. Louis, MO, March 30--Solutia Inc. said it will focus the production of nylon industrial fibers at its Greenwood, SC, plant. Nylon industrial fibers are used in diverse applications such as tire reinforcement, automotive airbags, and many other industrial uses.
As a result of this decision, Solutia will shut down its nylon industrial fiber manufacturing unit at its plant in Pensacola, Fla., pending approval by the U.S. Bankruptcy Court. Solutia's Pensacola plant will continue to be the world's largest integrated nylon 6,6 production facility, manufacturing nylon plastics, nylon carpet fiber, and chemical intermediates for use in nylon products.
However, it will close its nylon industrial fiber manufacturing unit by the end of May. This action will impact approximately 140 contractors and six Solutia employees. The impacted Solutia employees will have opportunities to apply for positions elsewhere within the company.
"A critical piece of Solutia's reorganization strategy is re-shaping our asset portfolio so it consists of high-potential businesses that can consistently deliver returns in excess of their costs of capital," said Jeffry N. Quinn, president and CEO of Solutia Inc. "Focusing our nylon industrial fiber production at the Greenwood site is our most recent step forward in implementing this strategy."
The Greenwood nylon industrial fiber unit utilizes much newer technology than the Pensacola unit, enabling it to achieve lower costs and higher quality. In addition to nylon industrial fibers, the Greenwood plant produces nylon carpet fiber and nylon plastics.
This matter is subject to bankruptcy court approval, and is scheduled to be heard in the U.S. Bankruptcy Court for the Southern District of New York on April 20.
