13 August 2010 22:10 [Source: ICIS news]
NEW YORK (ICIS)--US-based Dow Chemical will wind down its Dow Fiber Solutions (DFS) business, halting production of its olefin-based stretchable XLA fibre in the next 6-18 months, a company spokesperson said on Friday.
“This decision is consistent with our effort to streamline and focus the company’s portfolio of businesses,” said Dow spokeswoman Rebecca Bentley.
“After a thorough review, Dow determined that DFS was unable to compete with other Dow performance businesses for further investment and expansion,” she added.
XLA fibre is the sole product of DFS, and is produced in Tarragona, Spain. Dow would not disclose capacity of the plant or sales of the product.
Dow said it would continue to operate the facility to meet customers’ current and final order requirements. The facility would then cease to operate and an alternative use within Dow would be explored, said Bentley.
“We will take every reasonable step to minimise any disruption to our customers' business and to support their final product supply requirements, as they plan to transition their current business with XLA to suitable alternative materials,” she said.
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