20 September 1999 00:00 [Source: ICB Americas]To improve its profitability, E. I. du Pont de Nemours & Co. announced last week that it will cut back on operations in the Asia-Pacific region. The company will withdraw from selected Asian joint ventures and postpone or cancel more than $600 million in capital projects in the region.
DuPont expects that ongoing capital requirements for its global nylon fibers and intermediates business will drop to half of its 1997 peak of about $600 million. The company anticipates a one-time, after-tax charge of 35 cents per share in the third quarter as a result of dropping out of the joint ventures, as well as a write-down of its Singapore adipic acid plant, which it will continue to operate.
In Asia, DuPont's nylon joint ventures include an industrial fiber and fabric joint venture with Branta Mulia, which generates $200 million in sales annually, and a BCF, apparel and industrial fibers partnership with Teijin that has sales of $200 million.
DuPont, which is redefining itself as a life sciences company, is bundling its polyester operation, another cyclical, commodity fibers business, into joint ventures.
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