29 April 2002 14:59 [Source: ICIS news]
HOUSTON (CNI)--DuPont Textiles & Interiors (DTI) said Monday it plans to cut 2000 jobs - 10% of its global work force - and shut its Terathane polytetramethylene ether glycol (PTMEG) manufacturing unit in Niagara Falls, New York and portions of its spandex operations at Waynesboro, Virginia.
DuPont said it expects annual cost savings of about $120m (Euro133.3m) and plans to take a one-time second quarter charge of 12-16 cent/share for separation costs and plant shutdowns.
DuPont said that since plans are still being finalised, the amount of the charge would not be available until the end of the second quarter.
The company said more than two-thirds of the job reductions are at manufacturing facilities in the US with the balance in Europe. More than half of the employees will leave DuPont by 31 July.
Richard Goodmanson, DuPont executive vice president and chief operating officer who is leading DTI, said the company does not anticipate a negative impact to revenues because of the restructuring.
He added. "We will support our current revenue base from more competitive facilities. We are primed to grow revenues by capitalising on our strong global market access, key branded platforms and a robust innovation pipeline targeting the global apparel, interior and textile markets."
DuPont announced in February that it planned to create DTI as a new, wholly-owned subsidiary and separate it from DuPont by 2003.
Headquartered in Wilmington, Delaware, DuPont Textiles & Interiors is the largest integrated textile fibre and interiors business in the world with 2001 annual revenue of $6.5bn.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections