11 February 2002 14:42 [Source: ICIS news]
HOUSTON (CNI)--DuPont announced a major realignment of its business units Monday that includes the placement of its fibres operations into a new, wholly owned subsidiary marked for spin-off by the end of next year.
In its remaining operations, the Wilmington, Delaware-based science and chemicals company is establishing five platforms for growth, combining the units into: electronic and communications technologies; performance materials; coating and colour technologies; safety and protection; and, agriculture and nutrition.
DuPont's top executive, Charles Holliday, said the new subsidiary, called DuPont Textiles & Interiors, may be offered as an initial public offering (IPO) depending on the market environment. Although the company will review other options, he said a separation of some sort would occur by the end of 2003.
The new subsidiary will include DuPont's fibres operations in nylon, polyester and Lycra plus its intermediates and joint ventures. DuPont said the subsidiary will rank as the world's largest integrated fibres company with annual sales of at least $6.5bn (Euro7.6bn) - 23% of last year's total DuPont segment sales.
DuPont has named its chief operating officer Richard Goodmanson to head the new subsidiary but the company did not specify a title for his new role.
In explaining the decision, Holliday said: "A company can operate successfully for 200 years only by continually reinventing itself."
The company had scheduled conference calls Monday morning with analysts and the press to answer questions and offer more details.
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