12 July 2013 16:37 [Source: ICIS news]
LONDON (ICIS)--Belgium-headquartered Domo Chemicals is evaluating the sale of its nylon 6 (or polyamide 6) carpet yarns business to Italy-based Aquafil Group, both companies said on Friday.
The €50m ($66m)-turnover business, known under the brand Xentrys, is based in Leuna, Germany, and employs 220 people.
Domo and Aquafil said they had agreed to start exclusive negotiations on the potential sale but did not disclose any financial details.
“The potential transaction is an option for Domo Chemicals, which fits in its strategy to stronger concentrate on global growth of its chemicals, polymer and engineering plastics businesses,” the companies said in a joint statement.
“Aquafil’s intention is to focus its future strategy on the fibre business continuing a path of successful growth and globalisation,” the statement added.
Earlier this week, players in the European caprolacatam (capro) and nylon markets predicted that bulked continuous filament (BCF) carpet fibre demand would be 15% lower this month compared to July 2012.
The reduction is linked to poor macroeconomic conditions, which have limited construction activity across Europe, and also changing fashions in the region which are seeing BCF carpets substituted for other flooring types.
($1 = €0.76)
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