Solutia mulls divestment of its nylon business

30 June 2008 15:40  [Source: ICIS news]

LONDON (ICIS news)--Solutia has hired HSBC Securities to explore the possible sale of its nylon business, the St Louis, Missouri-based company said on Monday.

Solutia said the business operated at a loss in the first quarter of 2008 and that it planned to focus on its higher margin specialties businesses.

“Given the strength of our high-margin specialty chemical and performance materials businesses and the current industry dynamic in the nylon segment, it is an appropriate time to explore strategic alternatives available… that would better position both the nylon business and the rest of Solutia for reaching their ultimate potential,” said Solutia CEO Jeffry Quinn.

The nylon business posted sales of $1.89bn (€1.19bn) in the first quarter and a $7m loss in adjusted EBITDA (earnings before interest, tax, depreciation, amortisation) before special items.

Solutia said the business was one of only two world wide businesses that own the complete range of technology to produce nylon 66.

The company emerged from bankruptcy on 28 February 2008 after filing for bankruptcy protection in December 2003, saying it could no longer service environmental and post-retirement liabilities.

($1 = €0.63)

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By: Mark Watts
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