18 February 2002 00:00 [Source: ICB Americas]DuPont is forming a wholly owned subsidiary DuPont Textiles & Interiors that will encompass the company's nylon fibers, polyester fibers and Lycra fiber businesses and their intermediates and joint ventures. DuPont plans to spin off the textiles and interiors business by the end of 2003. The company will consider a full range of options for the division, including an initial public offering.
Headquartered in Wilmington, Del., the textiles and interiors subsidiary will be comprised of two businesses, each with subgroups: textiles and interiors--including apparel, home and industrial, and flooring; and intermediates--including nylon, Terathane and polyester intermediates, specialties and joint ventures. The subsidiary will operate in 50 countries and have 22,000 employees and revenues of $6.5 billion.
The new subsidiary's portfolio will feature many of DuPont's best known brands and trademarks including Lycra, Stainmaster, Coolmax and Dacron. The subsidiary will also be able to leverage other brands, including the DuPont and Teflon brands. It will have the largest research and development budget in its industry with roughly $170 million for product and process innovation in 2002.
"Upon formation of this subsidiary, we will become the largest player in the worldwide textile and interiors business with a portfolio of brands that is second to none," says Richard R. Goodmanson, executive vice president and COO of DuPont. The business "will enjoy the number one position in the six markets that comprise 75 percent of its revenue."
Mr. Goodmanson will head the leadership team of DuPont Textiles & Interiors. Steven R. McCracken, group vice president and general manager, DuPont Apparel & Textile, will lead the new subsidiary's downstream businesses. George MacCormack, group vice president and general manager, DuPont Chemicals and Polyester, will lead the upstream businesses.
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