02 July 2008 18:04 [Source: ICIS news]
HOUSTON (ICIS news)--US plastic compounder A Schulman is reviewing its Invision business unit, which could lead the company to sell it or establish a joint venture, the company's chief executive said on Wednesday.
The business unit makes Invision, which Schulman initially marketed to be used in automobile interiors as a substitute to polyvinyl chloride (PVC).
However, the company started marketing the product to non-automotive customers following a drop in US automobile sales.
Schulman is now supplying Invision to three customers on a regular basis, said Joseph Gingo, CEO.
However, volumes are small, he said. Moreover, even the non-automotive strategy could falter due to the slowdown in the US economy.
As a result, Schulman has hired a plastics consultant to recommend what Schulman should do with the product.
Schulman can continue its current strategy, sell the business unit, establish a joint venture or quit making Invision, Gingo said.
He said he doubted that Schulman will outright kill the business. "We have a product that is well received," Gingo said.
Most likely, the consultant will likely decide whether Schulman is the right company to bring the product to fruition, Gingo said.
The consultant should make a recommendation within two months, he said.
The Invision business unit reported operating losses of $1.6m (€1m) for the third quarter, compared wtih $2.2m for the same time last year.
($1 = €0.63)
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