Solutia to restructure Nylon business by production cuts, provisional shut downs

28-Nov-08

American performance materials and specialty chemicals provider, Solutia Inc. is planning restructuring its Nylon business to align production and inventories with the current economic environment. As per the company release, the plan is expected to cut the annualized fixed cost across Nylon business by roughly US$40 mln, or 10%. The plan also includes provisional curtailment in production throughout the Nylon chain-from intermediate chemicals to fibers and resins. Besides, the restructuring plan also comprise a business-wide cost-reduction program and a permanent close down of significant bulk continuous filament (BCF) carpet fiber assets at the plant in Greenwood, South Carolina. Earlier in June, Solutia announced exploring strategic alternatives for its Nylon business including a possible sale. Effective Q3-2008, the company began reporting results from its Nylon segment as discontinued operations.